Under the gold standard, if a country had a deficit in its balance of payments, it would have to:
A. sell gold in order to keep the value of its currency from rising.
B. buy gold in order to keep the value of its currency from rising.
C. sell gold in order to keep the value of its currency from falling.
D. buy gold in order to keep the value of its currency from falling.
Answer: C
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A. comparative advantage B. absolute advantage and possibly a comparative advantage. C. absolute advantage D. comparative advantage and an absolute advantage
The largest item on the asset side of the Federal Reserve balance sheet is
A) Federal Reserve notes. B) U.S. government securities. C) gold. D) U.S. Treasury deposits.
A major problem with the negative income tax is that
a. low tax rates imply low break-even incomes. b. low tax rates imply high break-even incomes. c. high tax rates imply low minimums. d. All of the above are correct.
Since 1946, the president of the United States has received guidance from the Council of Economic Advisers
a. True b. False Indicate whether the statement is true or false