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
D
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An expansionary monetary policy raises firms' cash flows by ________ interest rates
A) lowering real B) lowering nominal C) raising real D) raising nominal
Studies in industrially advanced nations indicate that a 3 percent increase in incomes will generate a:
A. 1 percent increase in the amount of health care demanded B. 1.5 percent increase in the amount of health care demanded C. 3 percent increase in the amount of health care demanded D. 6 percent increase in the amount of health care demanded