In David Hume's Price-Specie-Flow Doctrine or Adjustment Mechanism, the Assumption

Multiple Choice

In David Hume's price-specie-flow doctrine or adjustment mechanism, the assumption is made that changes in the money supply have an impact on __________. Further, the demand for traded goods is assumed to be __________ with respect to price.

A) prices rather than on output; elastic
B) prices rather than on output; inelastic
C) output rather than on prices; elastic
D) output rather than on prices; inelastic