A food surplus in a society can lead to many different things. But based on the principles of supply and demand a surplus of food should lead to a reduction in the price of food, because the quantity supplied is most likely higher than the quantity demanded. In addition a food surplus could lead a country or companies to sell their food surplus internationally or to "dump" the goods on another country or market by selling the goods for a very cheap price most likely lower than the price of the good in that market prior to the entry of this new producer or country with the food surplus.
The answer would be A, command economy
The next thing to occur would be B. the price level in the economy will rise and the money demand will decrease
<h3>What is Interest Rate? </h3>
This refers to the amount of money that is added to be paid back on the settlement of a loan.
Hence, we can see that after the federal reserve buys bonds, the interest rate changes and aggregate expenditures change, thus will cause the price level in the economy will rise and the money demand will decrease
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