With a pure gold standard
A. a balance of payments deficit or surplus does not occur.
B. there will be a tendency for reducing world trade.
C. a nation may not pursue an independent monetary policy.
D. an inflow of gold will reduce the money supply of a country.
Answer: C
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Which of the following would be removed from the U.S. aggregate demand measurement?
A. Japan’s purchase of General Electric combines from the United States B. China’s purchase of soybeans from U.S. farmers C. A foreign tourist’s purchase of New York City Statue of Liberty keychains D. An American professor’s purchase of a vintage manuscript from Rome, Italy
A system of deposit insurance
A) attracts risk-taking entrepreneurs into the banking industry. B) encourages bank managers to decrease risk. C) increases the incentives of depositors to monitor the riskiness of their bank's asset portfolio. D) increases the likelihood of bank runs.
If households spend $0.40 of each additional dollar of increased income, the expenditure multiplier will be
A) 1.67. B) 2.5. C) 4. D) 6.
Suppose a market with a Cournot structure has five firms and a market price elasticity of demand equal to -2. What is a Cournot firm's Lerner Index?
A) .1 B) .2 C) .5 D) 1