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:

Tort

A civil wrong or injury, other than breach of contract, for which the court will provide a remedy in the form of an action for damages.

Breach

The violation or non-fulfillment of a contractual obligation, duty, or agreement.

Contract

A legally enforceable promise or set of promises.

Nuisance

That which endangers life or health, gives offense to the senses, violates the laws of decency, or obstructs the reasonable and comfortable use of property.