Suppose the World Was on the Gold Standard

question 136

Multiple Choice

Suppose the world was on the gold standard.If the U.S.ran persistent trade deficits,all of the following would occur except

• A)the U.S.money supply would decline.
• B)the U.S.would have a falling average price level.
• C)U.S.interest rates would most likely rise.
• D)gold would flow into the United States.
• E)the U.S.trade deficit would disappear.

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Definitions:

Retina

The light-sensitive layer of tissue at the back of the inner eye, which acts as the film in a camera, capturing images.

Severe Damage

Severe damage refers to extensive harm or destruction that significantly affects the function or structure of an object, organism, or system.

Parallel Processing

The simultaneous distribution of information across different neural pathways.

Neural Pathway

A series of connected neurons along which electrical and chemical signals travel within the nervous system.