The Price-Specie-Flow Mechanism

question 138

Multiple Choice

The price-specie-flow mechanism

• A) is an automatic mechanism for assuring external balance under floating exchange rates.
• B) is an automatic mechanism for assuring external balance under the gold standard.
• C) is an automatic mechanism for assuring internal balance under floating exchange rates.
• D) is an automatic mechanism for assuring internal balance under the gold standard.
• E) is an automatic mechanism for assuring internal balance under mercantilism.

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Definitions:

Draw

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Conjunction Fallacy

A logical error where individuals incorrectly believe that specific conditions are more probable than a single general one.

Probabilities

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Uncertain Events

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