There can be no shortages or surpluses at the equilibrium price.

As the interest rate rises, it is possible that net capital outflow could move from a positive to a negative value

a. True b. False Indicate whether the statement is true or false

Which of the following statements is correct?

A. Price supports may induce either an underallocation or an overallocation of resources to farm products. B. Supported prices have no effect on the allocation of resources to farm products. C. Supported prices induce an underallocation of resources to farm products. D. Price supports induce an overallocation of resources to farm products.