Under a Gold Standard, a Balance of Payments Deficit Automatically

question 194

Multiple Choice

Under a gold standard, a balance of payments deficit automatically

• A)raised interest rates.
• B)decreased exports.
• C)increased domestic prices.
• D)increased imports.

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Definitions:

Yield-to-maturity

The total return anticipated on a bond if it is held until the end of its lifetime, taking into account both current income and principal repayment.

Weighted Average Cost

A calculation that takes into account the varying costs of goods or capital across different sources, weighted by their respective proportions in the total.

Marginal Tax Rate

The rate of tax applied to the next dollar of taxable income.

Pre-tax Cost

The expense or cost incurred by a corporation before the deduction of tax liabilities.