Faced with Increasing Outflows of Gold in the Late 1960's

question 8

Multiple Choice

Faced with increasing outflows of gold in the late 1960's and early 1970s, the United States:

• A)used contractionary fiscal policies to rid the nation of deficits.
• B)decreased the dollar price of gold.
• C)suspended the convertibility of dollars into gold.
• D)encouraged other countries to increase their domestic interest rates.

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Definitions:

Chemical Reaction

A process that leads to the transformation of one set of chemical substances to another, characterized by the breaking and formation of bonds.

Solute

Dissolved substance in a solution.

Oxidator

A chemical agent or substance that is capable of accepting electrons in a redox reaction, often leading to the oxidation of another substance.

Reducing Agent

A substance that donates electrons to another chemical species in a reaction, thereby reducing that species and oxidizing itself.