Suppose farmers in a given market can either grow soy beans or corn on their land. In addition, suppose an increase in the demand for corn causes the price of corn to increase. In the long run, this increase in the demand for corn is likely to ________ the price of soy beans.

By raising or lowering the _______, the Fed changes the cost of money for banks, which impacts the incentive to borrow reserves.

A. Reserve ratio B. Discount rate C. Money multiplier D. Yield

Suppose Congress increases the corporate profit tax rates. This is an example of

A) discretionary fiscal policy of the expansionary variety. B) automatic fiscal policy of the expansionary variety. C) discretionary fiscal policy of the contractionary variety. D) automatic fiscal policy of the contractionary variety.