The Price-Specie-Flow Mechanism Suggested That

question 21

Multiple Choice

The price-specie-flow mechanism suggested that

• A) a country could easily maintain a balance-of-payments surplus for a long period ofTime.
• B) a deficit country would experience an increase in its money supply and its price level.
• C) a surplus country would experience an increase in its money supply and its price level.
• D) a country's internal price level has no relation to the country's foreign trade activities.

---

Definitions:

Open Spaces

Areas of land, typically undeveloped, reserved for recreation, leisure, or preservation, often contributing to community health and well-being.

Dysfunction

An impairment or abnormal functioning of a bodily system or organ.

Bedlam

Historically, a term associated with chaos and confusion, originally referred to London’s Bethlem Royal Hospital, an asylum known for its poor conditions and treatment of the mentally ill.

Mentally Ill Patients

Individuals who suffer from a wide range of mental health conditions that affect their mood, thinking, and behavior.