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

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