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"The Weather Induced Failure of the 1999 Grain Crop Leads

Question 67

Multiple Choice

"The weather induced failure of the 1999 grain crop leads Russia to quadruple grain imports from the United States." Assuming that the U.S.grain exports come from government warehouses,


A) net investment in the United States would increase dramatically according to the flexible accelerator theory.
B) net investment in the United States would decrease dramatically according to the flexible accelerator theory.
C) there would be no change in net investment since the Russian demand is temporary.
D) net investment would increase slowly since this is agriculture.

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