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During the Price-Specie-Flow Adjustment Process to a Trade Imbalance, If

Question 7

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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

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