When the government reduces taxes, which of the following decreases?

Suppose that the central bank unexpectedly increases the growth rate of the money supply. In the short run the effects of this are shown by

a. moving to the left along the short-run Phillips curve. b. moving to the right along the short-run Phillips curve. c. shifting the short-run Phillips curve to the right. d. shifting the short-run Phillips curve to the left.

When the rate of interest is 10 percent, the present value of $100 payable in two years is approximately

A) $80. B) $83. C) $100. D) $110.