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:

Subjective Evaluation

A process of assessing or making judgments based on personal feelings, tastes, or opinions rather than external criteria or factual evidence.

Reproductive Potential

The maximum capacity of an organism to reproduce under optimal environmental conditions.

Economic

Pertaining to the production, consumption, and transfer of wealth within a society or geographical area.

Maleness-femaleness

The continuum of attributes that distinguish between the characteristics traditionally associated with males and females.