If the production of soybeans is subsidized by the government,
A) the demand for soybeans will increase.
B) the farmer's cost of producing soybeans will decrease.
C) the supply of soybeans will decrease.
D) all of the above will occur.
E) none of the above will occur.
B
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When the price of apples goes up
A) the quantity of apples demanded will decrease, ceteris paribus. B) the demand for apples will increase, ceteris paribus. C) the quantity of apples demanded will increase, ceteris paribus. D) the demand for apples will decrease, ceteris paribus.
The Taylor rule
A) is a rule stating that money should grow at a constant rate. B) is not considered to be a practical policy rule for central banks to follow. C) dictates that the central bank's target interest rate be responsive to real economic activity and to inflation. D) dictates that the nominal interest rate stay constant in the long run.