Pearson eText for Economics of Public Issues -- Instant Access (Pearson+)
20th Edition
ISBN: 9780137525331
Author: Roger Miller
Publisher: PEARSON+
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Textbook Question
Chapter 27, Problem 4DQ
From 2004 through 201l, the federal subsidy on U.S. ethanol production was roughly 50 cents per gallon. Use the theory of rational ignorance to explain why the ethanol subsidy was only about 50 cents per gallon rather than, say, $5 per gallon.
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A rise in consumption in the economy would cause an increase in aggregate demand. Therefore, when consumers spend money on everyday goods and services, it not only helps to stimulate economic growth, but it could also present potential issues like unsustainable debt levels or inflation. I believe that it would be beneficial to consider such factors and adopt a purchasing strategy to help navigate the challenges posed by inflation or unsustainable debt levels.
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Pearson eText for Economics of Public Issues -- Instant Access (Pearson+)
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