Explain why under the gold standard a perpetual surplus or a perpetual deficit is impossible
What will be an ideal response?
Since specie inflows drive up domestic prices and restore equilibrium in the balance of payments, any surplus eventually eliminates itself. A shortage of currency leads to low domestic prices and a foreign payments surplus, and any deficit eventually eliminates itself.
Economics
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Which of the following is NOT considered to be an economic resource?
A) your economics professor B) the telephone company repair truck C) the local gas station D) a view of the stars on a clear night
Economics
Consider the above figure. The curve shown is sometimes referred to as
A) the Laffer curve. B) the Ricardian curve. C) the Keynesian curve. D) the Phillips curve.
Economics