In a supply-and-demand graph for the Federal funds market, the demand curve is downward-sloping because:
A. Higher rates give banks less incentive to lend to other banks
B. Higher rates give banks more incentive to borrow reserves
C. Lower rate give banks less incentive to borrow reserves
D. Lower rates give banks more incentive to borrow reserves
D. Lower rates give banks more incentive to borrow reserves
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Markets provide the efficient amount of a good or service when
a. externalities are present. b. monopoly exists. c. public goods are present. d. competition is present and externalities and public goods are absent.
Refer to the table. In relation to column (3), a change from column (1) to column (2) would mostly likely be caused by:
A. reduced taste for the good.
B. an increase in input prices.
C. consumers expecting that prices will be lower in the future.
D. government subsidizing production of the good.