Calculate the inflation rate for a country where the GDP deflator rises from 120 to 165

In a free market, the market price and quantity in the above figure will adjust to equilibrium values of

A) $1 per gallon and 50 million gallons. B) $4 per gallon and 10 million gallons. C) $2 per gallon and 60 million gallons. D) $2 per gallon and 30 million gallons.

Under a gold standard, a balance of payments surplus automatically

a. raised interest rates. b. increased exports. c. increased domestic prices. d. decreased imports.