Under a gold standard, a balance of payments surplus automatically
A. raised interest rates.
B. increased exports.
C. increased domestic prices.
D. decreased imports.
Answer: C
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Briefly describe how the Bretton Woods system worked. What advantages did it have over the gold standard? What problems did the Bretton Woods system eventually encounter?
What will be an ideal response?
A purely financial investment that does not involve any management responsibility is referred to as _____
a. portfolio investment b. foreign direct investment c. current account trading d. open account trading
The amount of additional earnings that must be paid explicitly in taxes or implicitly in the form of a reduction in income supplements is known as the
a. marginal income tax rate. b. implicit marginal tax rate. c. explicit benefit-reduction rate. d. supplemental income tax rate.
Buying a cup of coffee with a dollar bill represents the use of money as a