Author Question: When the price of corn falls relative to the price of wheat, the market supply of wheat (which can ... (Read 236 times)

Mr. Wonderful · **on:** Jun 30, 2018

When the price of corn falls relative to the price of wheat, the market supply of wheat (which can be grown on the same land) is likely to increase.
a. True
b. False
Indicate whether the statement is true or false

Question 2

Jason has been holding his retirement savings in a safe in his house. Currently the economy is experiencing a falling price level. He can conclude that:
a. the real purchasing power of his money is remaining constant.
b. the real value of his savings is increasing as long as the price level is falling.
c. the real value of his savings is decreasing as long as the price level is falling.
d. none of the above are true.