An inconsistency in the mercantilist doctrine, as pointed out by David Hume, is that
A) the volume of a country's imports increases as an indirect consequence of mercantilism.
B) the exclusion of government influence in matters pertaining to trade is not ideal.
C) in the long run, no country could sustain a surplus on the balance of trade.
D) it was not backed by either sound political principles or social ideologies.
E) trade is a zero-sum game rather than a positive-sum game as postulated by the theory.

Question

Quizplus · Accepted Answer

David Hume argued that in the long run, a country could not sustain a trade surplus because it would lead to an increase in money supply, causing inflation and making exports less competitive.

An Inconsistency in the Mercantilist Doctrine, as Pointed Out by David