Multiple Choice
Two important assumptions contained in David Hume's price specie-flow
Adjustment mechanism are that
A) countries are at full employment and the demands for traded goods are
"inelastic."
B) countries are at full employment and the price level of a country moves in
Inverse proportion to movements in the country's money supply.
C) a country with a balance-of-payments deficit will experience a gold outflow And countries are at a level of employment that is below full employment.
D) the demands for traded goods are "elastic" and countries are at full
Employment.
Correct Answer:

Verified
Correct Answer:
Verified
Q7: During the price-specie-flow adjustment process to a
Q8: A Mercantilist policymaker would be in favor
Q9: In the context of David Hume's price-specie-flow
Q10: Why was a positive trade balance so
Q11: In David Hume's price-specie-flow doctrine or adjustment
Q13: The policy of minimum government interference in
Q14: In the Mercantilist view of international trade
Q15: According to the labor theory of value,<br>A)
Q16: What were the critical foundations of Mercantilist
Q17: Suppose that country A's total exports are