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When a Young Child Discovers That Simply Changing the Shape

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When a young child discovers that simply changing the shape of an object does not necessarily change the amount of the object (e.g., a flattened ball of clay contains the same amount of clay as when it was rolled into a ball) , the child is showing an understanding of

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Definitions:

Gold Standard

A monetary system in which a country's currency or paper money has a value directly linked to gold.

Balance Of Trade

The difference between the value of a country's exports and the value of its imports. A positive balance indicates a surplus, while a negative balance indicates a deficit.

Freely Floating Exchange Rate

A currency system where the value of a country's currency is allowed to fluctuate according to the foreign exchange market.

Current Account Deficit

A situation where a country's total imports of goods, services, and transfers are greater than its total exports, indicating that it is spending more foreign currency than it is earning.

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