If the USWere to Revert to a Gold Standard, Trade Deficits Would

question 93

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.increasing
• B)Result in higher domestic interest rates
• C)Quickly disappear
• D)Result in high inflation

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Definitions:

Satellite Global Positioning System

A network of satellites that provide navigation data to military and civilian users around the globe, enabling users to determine their exact location.

Depreciation

The accounting process of allocating the cost of a tangible asset over its useful life, representing wear and tear, or obsoleteness.

Mortgage Bond

A bond secured by a mortgage on a property, where the bondholders have a claim on the property in case of default.

Real Estate

Property consisting of land and the buildings on it, along with its natural resources such as crops, minerals, or water; immovable property of this nature.