VIEW ANSWER FOR PART FOUR : The Price Adjustment Mechanisms with Flexible and Fixed Exchange Rates

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 yen

d. it was introduced by David Hume to show the futility of the mercantilists' continuously accumulate gold

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