A shadow price is a a. price the producer will accept, rather ...

[DelorasTo]

A shadow price is a
 
  a. price the producer will accept, rather than the price the producer tries to get
  b. price used by a planner to make a non-profitable project appear profitable
  c. disequilibrium price
  d. price that would exist in the absence of all market distortions
  e. none of the above

Question 2

If domestic investment is growing faster than domestic savings, then net capital flows must be
 
  A) shrinking.
  B) positive.
  C) negative.
  D) growing.

[31809pancho]

Answer to Question 1

D

Answer to Question 2

A

[DelorasTo]

Correct answers!

[31809pancho]

Great! Please up vote