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:

Ironing

the process of using a heated tool (iron) to remove wrinkles from fabric, typically garments, enhancing their appearance.

Suppliers

Individuals or businesses that provide goods or services to consumers, businesses, or other organizations.

Households

Units of residence in an economy that include all individuals who live together and make joint economic decisions.

Goods And Services

The output produced by economic activities, encompassing tangible products (goods) and intangible items (services).