Multiple Choice
During the price-specie-flow adjustment process to a trade imbalance, if demands for Goods are inelastic, then, when the price level __________ in the country with the trade Deficit, the value of that country's exports will __________ as the price-specie-flow Process takes place.
A) falls; increase
B) falls; decrease
C) rises; increase
D) rises; decrease
Correct Answer:

Verified
Correct Answer:
Verified
Q2: Explain what is meant by a zero-sum
Q3: Explain how the price-specie-flow mechanism operates to
Q4: In Adam Smith's view, international trade<br>A) benefited
Q5: David Hume's price-specie-flow mechanism<br>A) reinforced the Mercantilist
Q6: In the price-specie-flow adjustment mechanism, a country
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
Q12: Two important assumptions contained in David Hume's