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
Q2: David Hume's price-specie-flow mechanism
A) reinforced the Mercantilist
Q3: Two important assumptions contained in David Hume's
Q4: If the demand for traded goods is
Q5: Explain what is meant by a zero-sum
Q6: Why was a positive trade balance so
Q7: (a) Why did the Mercantilists think
Q8: The price-specie-flow mechanism suggested that
A) a country
Q9: In Adam Smith's view, international trade
A) benefited
Q10: In David Hume's price-specie-flow doctrine or adjustment
Q11: Explain how the price-specie-flow mechanism operates to
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