Under the gold standard, when a nation had a deficit in its balance of payments,
A) interest rates would rise which would reduce foreign investment.
B) interest rates would fall which would increase foreign investment.
C) gold would flow to foreign residents and the domestic money supply would decrease.
D) gold would flow into the country leading to an increase in the domestic money supply.
C
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According to the classical theory of international trade
A) only countries with low wages will export. B) only countries with high wages will import. C) countries with high wages will have higher relative prices of all goods. D) All the above are false.
If a movie theater is going to gain by charging students a dollar less than other customers,
a. the demand of students must be more elastic than that of other customers. b. the demand of students must be less elastic than that of other customers. c. students must have higher incomes than other customers. d. other customers must enjoy movies more than students.