An increase in the price level shifts the money demand curve to the left, causing interest rates to increase

Disposable income can be defined as national product

a. minus federal and state taxes. b. minus taxes plus transfers. c. minus indirect taxes. d. plus taxes plus transfers.

A country such as the United States, which has a low saving rate and attractive investment opportunities, will tend to experience a long-term

a. inflow of capital and a current account surplus. b. inflow of capital and a current account deficit. c. outflow of capital and a current account surplus. d. outflow of capital and a current account deficit.