According to Hume's Price-Specie-Flow Mechanism,a Sudden Increase in the Money

question 12

Multiple Choice

According to Hume's price-specie-flow mechanism,a sudden increase in the money stock of Country A will

• A)cause an immediate deflation in Country A.
• B)lead to an increase in Country A's imports relative to its exports.
• C)lead to an increase in Country A's exports relative to its imports.
• D)cause specie from the rest of the world to flow into Country A.

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Definitions:

K-12 School Year

The educational period or academic years that include kindergarten through 12th grade in many countries, marking the compulsory stages of schooling.

Resources Are Scarce

The economic principle that the amounts of natural resources, goods, and services available are limited in relation to the desires and needs of people.

Households

The basic economic unit of a society, typically consisting of people living together in the same dwelling.

Societies

Groups of individuals who share a common culture, institutions, or identity, often living together within a defined geographical area.