Which of the Following Statements Is Not True with Regard

question 9

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 that a nation should attempt to continuously accumulate gold

Comprehend how emotions such as envy and embarrassment are used in advertising to influence consumer behavior.

Understand the concept of discrete emotions and their definitions.

Apply knowledge of discrete emotions to marketing strategies.

Explain the concept of sentiment analysis and its application in social media.

---

Definitions:

Free Market

An economic system where prices for goods and services are determined by the open market and by consumers, with minimal government intervention.

Market Price

Today's rate at which one can sell or buy a service or asset.

Not Binding

A term used to describe a situation where a constraint or limit (such as a price ceiling or floor) does not affect the equilibrium outcome of the market.

Equilibrium Price

The market price where the quantity of goods supplied equals the quantity of goods demanded.