Changes in the rate of interest are detectable in the changes in the structure of relative prices of various types of goods. With that in mind, answer the following two questions and explain your answers.

a. If the price of raisins (relative to grapes), of prunes (relative to plums), of whiskey (relative to corn), of cider (relative to apples) should rise, would that mean a change in the rate of interest? In what direction would the change in interest go, up or down? Why?

b. If you were advising the farmers in the cases listed above, would you tell them to invest in making raisins, prunes, whiskey, and cider? Why?