After an increase in demand in a constant-cost industry, firms will find themselves with higher average cost curves

Which of the following is true regarding the cost curves faced by a firm?

a. when MC > ATC, AVC must be falling b. when MC > AVC, ATC must be rising c. when MC > ATC, ATC must be rising d. MC and ATC are the same for a perfectly competitive firm e. when MC is a horizontal line, price is constant

The supply of loanable funds would shift to the right if either

a. tax reforms encouraged greater saving or the budget deficit became smaller. b. tax reforms encouraged greater saving or investment tax credits were increased. c. the budget deficit became larger or investment tax credits were increased. d. the budget deficit became larger or tax reforms discouraged saving.