The Price-Specie-Flow Mechanism Suggested That

Multiple Choice

The price-specie-flow mechanism suggested that

A) a country could easily maintain a balance-of-payments surplus for a long period ofTime.
B) a deficit country would experience an increase in its money supply and its price level.
C) a surplus country would experience an increase in its money supply and its price level.
D) a country's internal price level has no relation to the country's foreign trade activities.