Under the Gold Standard, If a Country Had a Deficit

question 197

Multiple Choice

Under the gold standard, if a country had a deficit in its balance of payments, it would have to:

• A)sell gold in order to keep the value of its currency from rising.
• B)sell gold in order to keep the value of its currency from falling.
• C)buy gold in order to keep the value of its currency from rising.
• D)buy gold in order to keep the value of its currency from falling.

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Definitions:

Making Pizzas

The process of preparing and baking pizzas, which involves creating the dough, adding toppings, and cooking in an oven.

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The amount of compensation or payment received for each hour of work performed.

Behavioral Contrast

The phenomenon where the rate of response to a stimulus changes significantly when the conditions of reinforcement for another stimulus are modified.

Lack of Money

The state of not having sufficient monetary resources, which can affect one’s ability to satisfy basic needs or attain certain goals.