1. Suppose the classical gold standard was still in place. If China starts exporting more to the US than the US import from China, which of the following statements is not correct? a) China's exports will be accompanied by a net gold flow from the US to China b) The net gold flow will lead to lower prices in the US and higher prices in China c) The price-specific-flow mechanism will slow down exports d) The price-specific-flow mechanism will keep the exchange rates constant