The level of crowding out associated with a tax cut will be smaller if the tax change has a supply-side effect than it will be if it only has a demand-side effect

According to this Application, as the U.S. economy grew from the early 1990s, U.S. exports also increased as our demand for foreign products promoted growth in foreign countries. This increase in exports would tend to

A) decrease U.S. GDP and reduce unemployment in the short run. B) decrease U.S. GDP and increase unemployment in the short run. C) increase U.S. GDP and reduce unemployment in the short run. D) increase U.S. GDP and increase unemployment in the short run.

If a security pays $55 in one year and $133 in three years, its present value is $150 if the interest rate is

A) 5 percent. B) 10 percent. C) 12.5 percent. D) 15 percent.