The Principal Cause of a Third Farm Depression Beginning in 1997

question 86

Multiple Choice

The principal cause of a third farm depression beginning in 1997 was

• A)A crop failure in 1998.
• B)The Asian economic crisis.
• C)A decrease in grain prices.
• D)Environmental damage.

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Definitions:

Absolute Purchasing Power Parity

The concept that, if transportation and transaction charges are eliminated, the price of identical items should be equivalent across countries when converted into a uniform currency.

Exchange Rate

The price at which one currency can be exchanged for another currency, influencing international trade and investment.

Bushel

A unit of volume that is used in the United States for measuring agricultural commodities, including grains and fruits.

Interest Rate Swap

A financial derivative that companies use to exchange interest rate payments on debt over a set period.