David Hume's price-specie-flow mechanism
A) reinforced the Mercantilist notion that a country could maintain a permanent "favorable" balance of trade where exports exceeded imports.
B) works more effectively if demands for traded goods are "price-elastic" rather than "price-inelastic."
C) assumed that the countries involved have substantial unemployment.
D) works equally effectively whether demands for traded goods are "price-elastic" or "price-inelastic."
Correct Answer:
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Q1: During the price-specie-flow adjustment process to a
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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