Under the gold standard, a nation with a balance of payments deficit would experience a gold:
A. inflow and an increase in its money supply.
B. inflow and a reduction in its money supply.
C. outflow and an increase in its money supply.
D. outflow and a reduction in its money supply.
Answer: D
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Under the VER of the 1980s, U.S. automakers:
a. continued their downward slide. b. could not recover because they were also faced with other issues, such as labor unrest, increased oil and steel prices, and higher taxes. c. were able to raise prices and improve quality to get even higher prices. d. were able, with the quota, to ignore world market conditions.
Which statement is true regarding average variable cost?
a. Average variable cost is the additional cost of producing one more unit of output. b. The average variable cost curve will always lie below the curve for average total cost. c. Average variable cost is obtained when variable cost is multiplied by quantity of output. d. As output grows, average variable cost moves farther away from average cost.