If the US Were to Revert to a Gold Standard, Trade Deficits

question 67

Multiple Choice

If the U.S. were to revert to a gold standard, trade deficits would:

• A) result in gold reserves in the U.S. decreasing.
• B) result in lower domestic interest rates.
• C) quickly disappear.
• D) result in high inflation.

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Definitions:

Divergent

Moving or extending in different directions from a common point; in thinking, it refers to exploring many possible solutions or ideas.

Decisive

Characterized by or displaying no or little hesitation; firm or determined in making choices or decisions.

Priming

A psychological effect in which exposure to a stimulus influences a response to a subsequent stimulus, without conscious guidance or intention.

Insight

The capacity to gain an accurate and deep intuitive understanding of a person or thing, often leading to a sudden realization.