Which of the Following Statements Is Correct

question 231

Multiple Choice

Which of the following statements is correct?

• A) Under the gold standard, exchange rates fluctuate without restraint and thereby correct any international balance of payment disequilibrium.
• B) If nations X and Y are on the international gold standard, and X's exports to Y exceed X's imports from Y, then gold will flow from X to Y.
• C) If the dollar price of pounds rises, then the pound price of dollars will also rise.
• D) American exports tend to increase, while American imports tend to decrease, the supplies of foreign monies deposited in American banks.

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Definitions:

Fear Appeal

A persuasive message that attempts to arouse fear in order to divert behavior through the highlighting of negative consequences.

Stanley Milgram

An American social psychologist best known for his controversial experiment on obedience conducted in the 1960s, demonstrating people's willingness to follow orders from an authority figure even to the extent of harming others.

Permanent Tissue Damage

Long-lasting or irreversible harm to body tissues, which can affect their function.

Evaluation Apprehension

Concern that others are evaluating our behavior.