Author Question: According to Hume's price-specie-flow mechanism, a sudden increase in the money stock of Country A: ... (Read 43 times)

Kikoku · **on:** Jun 30, 2018

According to Hume's price-specie-flow mechanism, a sudden increase in the money stock of Country A:
a. causes an immediate deflation in Country A.
b. leads to an increase in Country A's imports relative to its exports.
c. leads to an increase in Country A's exports relative to its imports.
d. causes specie from the rest of the world to flow into Country A.

Question 2

Explanations for the decline in U.S. productivity in the 1970s and 1980s include all of the following except:
a. difficulties with measuring service sector output.
b. the entry into the labor force of many young, inexperienced workers.
c. a wave of corporate mergers that reduced competition.
d. rising oil prices.

ApricotDream · **Reply #1 on:** Jun 30, 2018

Answer to Question 1

b. leads to an increase in Country A's imports relative to its exports.

Answer to Question 2

c. a wave of corporate mergers that reduced competition.