Which of the Following Statements Is True of a Country

question 106

Multiple Choice

Which of the following statements is true of a country that has a gold standard exchange
Rate system?

• A) A country running a deficit in its balance of payment would experience an outflow of gold which would force it to increase the price of gold.
• B) A country running a deficit in its balance of payment would experience an outflow of gold which would force it to decrease the price of gold.
• C) A country running a deficit in its balance of payment would experience an outflow of gold which would force it to reduce its money supply.
• D) A country running a deficit in its balance of payment would experience an outflow of gold which would force it to increase its money supply.

---

Definitions:

Composition

The act of combining parts or elements to form a whole, often used in art, music, and writing.

Wood

The hard, fibrous material forming the trunk and branches of trees or shrubs, used for construction, fuel, and numerous other purposes.

Begging the Question

A logical fallacy where the conclusion of an argument is assumed in the premise, offering no real evidence.

Society

A community of individuals living together and interacting with each other.