Under a Gold Standard in Which France Defined One Franc

question 65

Multiple Choice

Under a gold standard in which France defined one franc to be worth 1/50^th of an ounce of gold and the U.S. defined one dollar to be worth 1/10^th of an ounce of gold, then

• A)one U.S.dollar would exchange for five French francs.
• B)the French franc is worth only one-tenth as much as the dollar is worth.
• C)the U.S.dollar is valued at one-fifth of the French franc.
• D)one French franc would exchange for ten dollars.
• E)exports would rise in France and decline in the U.S.

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Definitions:

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