Explain how the gold standard operated
What will be an ideal response?
Under the gold standard, each country defined their currency in terms of gold. If U.S. residents imported more than they exported, other countries turned in dollars for gold, causing the money supply to fall in the United States. Interest rates would then increase, causing an influx of foreign capital and an improved balance of payments.
You might also like to view...
Refer to the figure below. 
If both firms offer reduced rates, each earns ________, and if both firms keep their rates high, each earns ________.
A. 500; 300 B. 300; 500 C. 300; 50 D. 50; 300
Larry spends all his $800 monthly income on pizza and gasoline. The price of pizza is $4 a slice, and the price of gasoline is $2 per gallon
If Larry buys 150 slices of pizza per month, his budget constraint will allow him to buy ________ gallons of gas per month. A) 100 B) 80 C) 120 D) 200
A dominant strategy is one that
a. makes every player better off b. makes at least one player better off without hurting the competitiveness of any other player c. increases the total payoff for one player d. is best for a player, regardless of what strategy other players follow e. leads to quicker convergence to market equilibrium
In North Carolina, a car must pass an emissions test before it can be registered. The emissions test costs $20 per car. This system is an example of
A. direct controls on pollution. B. a per-unit emissions tax. C. a “license to pollute.” D. subsidies for nonpollution.