During the Price-Specie-Flow Adjustment Process to a Trade Imbalance, If

question 7

Multiple Choice

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

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Definitions:

Interest Paid

The total amount of interest payments made on any borrowed funds or debt over a specific period.

Operating Activities

Transactions and events that enter into the determination of net profit or loss, involving the primary revenue-producing activities of the enterprise and other activities that are not investing or financing activities.

AASB 107

Australian Accounting Standards Board rule 107, which specifies requirements for the presentation of cash flow statements.

Cash Flow Information

provides details about a company's cash inflows and outflows over a period.