Which of the Following Statements Is Not True with Regard

question 6

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

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Definitions:

Cost-Cutting Measure

Strategies or actions implemented by a company to reduce its expenses and improve profitability.

Shareholder Value

The financial worth that a company delivers to its shareholders, often measured by stock price appreciation and dividend payouts.

Firms Fail

The situation where businesses are unable to continue operations due to financial problems, market competition, or poor management.

Due Diligence

The comprehensive appraisal of a business or individual prior to signing a contract, or an act with a certain standard of care.