Which of the Following Statements Is True of a Country

question 106

Multiple Choice

Which of the following statements is true of a country that has a gold standard exchange
Rate system?

• A) A country running a deficit in its balance of payment would experience an outflow of gold which would force it to increase the price of gold.
• B) A country running a deficit in its balance of payment would experience an outflow of gold which would force it to decrease the price of gold.
• C) A country running a deficit in its balance of payment would experience an outflow of gold which would force it to reduce its money supply.
• D) A country running a deficit in its balance of payment would experience an outflow of gold which would force it to increase its money supply.

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Definitions:

Basic Needs

Fundamental requirements that serve as the foundation for survival, including physiological needs such as food, water, shelter, and safety.

Hierarchy

A system or organization in which people or groups are ranked one above the other according to status or authority.

Maslow

Abraham Maslow, a psychologist known for creating Maslow's hierarchy of needs, which is a theory of psychological health predicated on fulfilling innate human needs in priority, culminating in self-actualization.

Unconscious Fixations

Deeply held impulses or patterns of thought rooted in one's subconscious mind, influencing behavior or attitudes.