In David Hume's Price-Specie-Flow Doctrine or Adjustment Mechanism, the Assumption

question 11

Multiple Choice

In David Hume's price-specie-flow doctrine or adjustment mechanism, the assumption is made that changes in the money supply have an impact on __________. Further, the demand for traded goods is assumed to be __________ with respect to price.

• A) prices rather than on output; elastic
• B) prices rather than on output; inelastic
• C) output rather than on prices; elastic
• D) output rather than on prices; inelastic

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Definitions:

Alternation of Generations

A reproductive cycle found in certain plants and algae, involving a sequential occurrence of two distinct forms, one haploid and the other diploid, each giving rise to the other.

Zygote

Diploid cell formed by the union of two gametes; the product of fertilization.

Gametophyte

The sexual phase in the life cycle of plants and algae that produces gametes, typically through mitosis.

Spores

Asexual reproductive or resting cells capable of developing into a new organism without fusion with another cell, often seen in bacteria, fungi, and plants.