Final answer:
Monetary and fiscal policy can have positive effects on farm income and land prices of corn.
Step-by-step explanation:
The effect of macroeconomic policy on farm income and land prices of corn can be analyzed through monetary and fiscal policy.
Monetary policy involves actions taken by the central bank to influence the money supply and interest rates in the economy. When the central bank implements expansionary monetary policy, such as decreasing interest rates or buying government bonds, it increases the supply of money and lowers borrowing costs. This can stimulate economic activity, increase demand for agricultural products like corn, and potentially lead to higher farm income and land prices.
Fiscal policy, on the other hand, refers to government spending and taxation. When the government implements expansionary fiscal policy, such as increasing government spending or decreasing taxes, it can boost overall economic demand. This increased demand can positively impact the demand for corn, leading to higher prices and potentially higher farm income.