The value of a stock depends on the ability of the company to generate dividends and the expected price of the stock when the stockholder sells her shares

On the graph above, a possible cause of the rightward shift of the IS curve is an increase in ________

A) foreign demand for domestic goods B) taxes C) domestic demand for foreign goods D) the exchange rate E) none of the above

Which of the following will shift the consumption function upward?

a. A decrease in stock prices b. An increase in stock prices c. A higher price level d. A lower disposable income e. A higher disposable income