If the U.S. were to revert to a gold standard, trade deficits would:
A. result in higher domestic interest rates.
B. quickly disappear.
C. result in high inflation.
D. result in gold reserves in the U.S. increasing.
Answer: A
You might also like to view...
Once international trade occurs, a country with a comparative advantage in the production of a good will ________ production of the good and ________
A) decrease; import the good B) increase; export the good C) not change; import the good D) increase; import the good E) decrease; export the good
When Ferrari sells stock to the public in its IPO, it will do so through the New York Stock Exchange. People who buy the shares will
A) do so in the indirect finance market. B) own part of the company. C) be promised to be repaid their investment plus interest. D) All of the above are true.
When measuring the actual output produced in an economy, one should focus on GDP measured in nominal terms
Indicate whether the statement is true or false
A tax of $1 on buyers shifts the demand curve downward by exactly $1
a. True b. False Indicate whether the statement is true or false