Under the Classical Gold Standard the Price-Specie Mechanism automatically returned a country to balance-of-payments balance. Outline how this adjustment mechanism worked if one country moved into a balance of payments surplus. The Federal Reserve engages in a policy of Quantitative Easing. How is this likely to affect the value of the U.S.Dollar and U.S. interest rates? Explain how the London interbank market establishes the benchmark interest rates of LIBID and LIBOR. Explain what the importance of these rates are and how they are determined