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Payments Adjustment Suggests Quiz

The monetary approach to balance-of-payments adjustments suggests that all payments deficits are the result of

Which approach to balance-of-payments adjustment suggests that balance-of-payments surpluses are the result of excess money demand in the home country?

According to the quantity theory of money, a change in the domestic money supply will bring about

Under the gold standard, a nation with a current-account surplus would realize gold outflows, a decrease in its money supply, and a fall in its domestic price level.

According to the equation of exchange, the total expenditures on final goods equals the monetary value of the final goods sold.

According to the “rules of the game” of the gold standard era, a country’s central bank agreed to react to international gold flows so as to

The formulation of the so-called income adjustment mechanism is associated with

The essence of the classical price-adjustment mechanism is embodied in the quantity theory of money.

Regarding the equation of exchange, the classical economists assumed that final output was below its maximum level while the velocity of money was volatile.

The monetary approach to balance-of-payments adjustments suggests that all payments surpluses are the result of

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