In a Move to Free the Economy from Unnecessary Regulation

question 83

Multiple Choice

In a move to free the economy from unnecessary regulation, Congress decides to remove sugar price supports.What would most likely happen to the number of producers of sugar?

• A)It would decrease, because sugar prices would fall.
• B)It would decrease, because sugar prices would rise.
• C)It would increase, because sugar prices would fall.
• D)It would increase, because sugar prices would rise.

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Definitions:

Future Value

An asset or cash's value on a particular date in the future, matching the value of a specified amount now.

Interest Rate

The percentage of an amount of money charged for its use over a specified period.

Cash Flows

Refers to the total amount of money being transferred into and out of a business, especially affecting liquidity.

Years

Units of time equal to 365 days (or 366 days in a leap year), often used as a measure of time for financial, operational, or strategic planning.