Which is the most likely effect upon the market for cotton of an increase in production costs due to higher oil prices?
A) A decrease in demand and hence a decrease in both the price of cotton and the quantity exchanged.
B) A decrease in supply and hence a decrease in both the price of cotton and the quantity exchanged.
C) A decrease in supply and hence an increase in the price of cotton and a decrease in the quantity exchanged.
D) A decrease in both supply and demand and hence a decrease in the quantity exchanged but no predictable change in the price of cotton.
C
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Only about one-fourth of the federal budget involves expenditure categories determined by existing obligations and laws
a. True b. False Indicate whether the statement is true or false
In which case would the quantity of money demanded by the public tend to increase by the greatest amount?
A. The interest rate increases and nominal GDP increases B. The interest rate increases and nominal GDP decreases C. The interest rate decreases and nominal GDP decreases D. The interest rate decreases and nominal GDP increases