In the circular flow model, firms sell the services of factors of production to households

How do future expectations about the price of a good affect the present supply?

(A) If the price is expected to decrease, many producers will hold onto their supply. (B) If the price of a related good is expected to increase, only a few sellers will hold onto their supply until the increase occurs. (C) If the price is expected to increase, many producers will hold onto their supply. (D) If the price is expected to increase and then decrease, most sellers will hold onto their supply until the decrease has occurred.

Financial markets promote economic efficiency by

A) channeling funds from investors to savers. B) creating inflation. C) channeling funds from savers to investors. D) reducing investment.