Under an International Gold Standard

question 180

Multiple Choice

Under an international gold standard,

• A)exchange rates would fluctuate inversely with the domestic interest rates of the participating countries.
• B)each nation must agree to depreciate its currency in direct proportion to the growth of its real GDP.
• C)gold would flow into a nation experiencing a balance of payments surplus.
• D)exchange rates would fluctuate directly with the domestic price levels of the various trading countries.

---

Definitions:

Incomplete Description

A partial or insufficient explanation that fails to cover all aspects or details of a subject.

Last Stage

The final phase in a process or life cycle, often implying a conclusion or the end of growth.

Final Stage

The last phase or part of a process, often implying the culmination or conclusion of something.

Maturity

The state or quality of being fully grown or developed, often characterized by emotional stability and the ability to respond to situations in an appropriate manner.