Financial deregulation and innovation since the late 1970s has made spending, especially new housing, ________ sensitive to changes in the market interest rate, leading to a ________ IS curve

An increase in the supply of a good will cause

a. a decrease in equilibrium price and an increase in equilibrium quantity. b. an increase in equilibrium price and quantity. c. an increase in equilibrium price and a decrease in equilibrium quantity. d. a decrease in equilibrium price and quantity.

If the combination of goods consumed at point C is preferred to combination D then

A) point C is on a higher indifference curve. B) point C is on the same indifference cure but at a point where the vertical axis value is greater than point D's vertical axis value. C) point C is on a lower indifference curve. D) point C is on the same indifference curve but at a point where the horizontal axis value is greater than point D's horizontal axis value.