According to the price-specie-flow-doctrine, a trade-surplus nation would experience gold outflows, a decrease in its money supply, and a fall in its price level.

Question

Quizplus · Accepted Answer

According to the price-specie-flow mechanism, a trade-surplus nation would experience gold inflows, an increase in its money supply, and a rise in its price level, opposite to what is stated.

According to the Price-Specie-Flow-Doctrine, a Trade-Surplus Nation Would Experience Gold