Suppose,in the United States,each farmer is given a federal agricultural subsidy worth $30,000.What will be the effect of such subsidy?
A) They discourage domestic agricultural production.
B) They allow U.S.farmers to sell their products for lower prices in foreign markets.
C) They give foreign producers an unfair cost advantage.
D) They increase the amount of agricultural imports into the United States.
E) The price of the primary products decline in the U.S.market.
Correct Answer:
Verified
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