In the strategic view of bargaining the outcome depends on

If there is a change in the federal funds rate from a target rate due to an increase in the demand for reserves, the Fed can maintain the target by:

A) causing an upward movement along the supply of reserves curve. B) causing the supply curve of reserves to shift to the left. C) causing a downward movement along the supply of reserves curve. D) causing the supply curve of reserves to shift to the right.

For-profit producers will produce only private goods because

A) buyers will be willing to pay for the goods since the benefits are excludable. B) all external benefits can be internalized using market prices. C) the cost of production can be easily determined. D) markets exist for private goods but not for public goods.