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:

Fixated

Showing an obsessive or persistent attachment to someone or something, or remaining in an immature psychological development stage.

Freud's Theory

A set of psychoanalytic theories proposed by Sigmund Freud, focusing on unconscious desires, childhood experiences, and stages of psychosexual development.

Lagging Behind

The state or condition of being slower than desired or expected, often used in educational or developmental contexts.

Processes

Encompasses a series of actions, changes, or functions that bring about a result or accomplish an objective.