SUGGESTEDANSWERSANDSOLUTIONSTOEND-OF-CHAPTERQUESTIONSANDPROBLEMSCHAPTER2INTERNATIONALMONETARRSRSTEMSUGGESTEDANSWERSANDSOLUTIONSTOEND-OF-CHAPTERQUESTIONSANDPROBLEMSQUESTIONS2.ERplainthemechanismwhichrestoresthebalanceofpaRmentsequilibriumwhenitisdisturbedunderthegoldstandard.Answer:Theadjustmentmechanismunderthegoldstandardisreferredtoastheprice-specie-flowmechanismeRpoundedbRDavidHume.Underthegoldstandard,abalanceofpaRmentdisequilibriumwillbecorrectedbRacounter-flowofgold.Suppos
