Asked by
Joel Ismael Gonzalez
on Nov 26, 2024Verified
Under an international gold standard, a flow of gold from country A into country B would be halted by
A) a rise in the price of B's currency measured in terms of A's currency.
B) government export controls on gold.
C) rising prices and incomes in B and falling prices and incomes in A.
D) rising prices and incomes in A and falling prices and incomes in B.
International Gold Standard
A monetary system in which the standard economic unit of account is based on a fixed quantity of gold, allowing for stable exchange rates among countries.
Gold Flow
The movement of gold between countries, often used as a form of international payment or to stabilize currencies under the gold standard.
Price and Incomes
Policies or measures aimed at controlling the growth of prices and incomes to curb inflation without affecting employment.
- Acquire knowledge about the core principles of the gold standard and its effects on international monetary policy and balance of payments corrections.
Verified Answer
SC
Learning Objectives
- Acquire knowledge about the core principles of the gold standard and its effects on international monetary policy and balance of payments corrections.