Consider Two Countries, Mondrain and Davenport That Are on the Gold

question 162

Multiple Choice

Consider two countries, Mondrain and Davenport that are on the gold standard exchange
Rate system. The exchange rate implied by the gold standard is 5 divas (Davenport's
Currency) per mond (Mondrain's currency) . Suppose at this exchange rate, the quantity supplied of monds exceeds the quantity demanded. Which of the following is true?

• A) Spending flowing out of Mondrain exceeded spending flowing into Mondrain.
• B) Spending flowing into Mondrain exceeded spending flowing out of Mondrain.
• C) Mondrain's exports to Davenport exceeded its imports from Davenport.
• D) Residents of Davenport acquired more assets in Mondrain than residents of Mondrain purchased in Davenport.

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Definitions:

Vacation Time

Allocated time off work provided by employers to employees for rest and recreation, often paid.

Maximum Amount

The highest possible sum or total that can be achieved, allowed, or allocated in a specific context.

Unemployment Compensation

Money paid by the government to unemployed workers who meet certain eligibility requirements.

Salaried Quarters

A housing or lodging provision as part of an employment compensation package, often found in academic, military, or corporate settings.