Consider Two Countries, Mondrain and Davenport That Are on the Gold

question 151

Multiple Choice

Consider two countries, Mondrain and Davenport that are on the gold standard exchange Jrate system. The exchange rate implied by the gold standard is 5 divas (Davenport's
Jcurrency) per mond (Mondrain's currency) . Suppose at this exchange rate, the quantity supplied of monds exceeds the quantity demanded. Which of the following is true?

• A) Spending flowing out of Mondrain exceeded spending flowing into Mondrain.
• B) Spending flowing into Mondrain exceeded spending flowing out of Mondrain.
• C) Mondrain's exports to Davenport exceeded its imports from Davenport.
• D) Residents of Davenport acquired more assets in Mondrain than residents of Mondrain purchased in Davenport.

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Definitions:

Distributed Leadership

Distributed leadership is a management approach where leadership roles are shared among group members or throughout an organization, rather than concentrated in a single person.

Social Loafing

The tendency for individuals to decrease their effort in goal attainment when part of a group versus when working solo.

Cohesiveness

Refers to the strength of bonds between members of a group or team, enhancing unity and commitment towards common goals.

Groupthink

A mental occurrence happening among individuals in a group, where the preference for unity or agreement leads to unwise or ineffective outcomes in decisions.