Which of the Following Statements Is Not True with Regard

Multiple Choice

Which of the following statements is not true with regard to the price-specie-flow mechanism:

A) relies on the quantity theory of money
B) requires that nations allow their money supply to rise when the nation has a surplus in its balance of payments and to fall when the nation has a deficit
C) requires that the price elasticity of demand for imports and exports be equal to zero
D) it was introduced by David Hume to show the futility of the mercantilists' prescription that a nation should attempt to continuously accumulate gold