Suppose That at the Fixed Exchange Rate Implied by the Gold

question 3

Multiple Choice

Suppose that at the fixed exchange rate implied by the gold standard, the quantity supplied of Podgland's currency exceeded the quantity demanded. This implies that

• A) Podgland has a surplus in its balance of payments.
• B) Podgland has a deficit in its balance of payments.
• C) Podgland has a surplus in its capital account.
• D) The exchange rate will fall to restore equilibrium.

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Definitions:

Monocot

A group of flowering plants (angiosperms) characterized by having a single cotyledon (seed leaf), parallel-veined leaves, and flower parts typically in multiples of three.

Cactus

A family of plants (Cactaceae) well adapted to dry environments, characterized by thick, fleshy stems that store water.

Onions

Bulbous plants belonging to the genus Allium, known for their strong smell and pungent flavor, used both as a vegetable and a seasoning.

Male Cone's

Cone-bearing structures on male plants, especially conifers, which produce pollen as part of the reproductive process.