Under a gold standard, a. b. a deficit in the balance of payments increased a nation's money supply automatically. C. d. with a balance of payments deficit, interest rates would fall and attract foreign capital. e. all currencies were defined in terms of gold. when a nation had a deficit in its balance of payments, more gold was flowing in than was flowing out. All of the above are correct.

Under a gold standard, a. b. a deficit in the balance of payments increased a nation's money supply automatically. C. d. with a balance of payments deficit, interest rates would fall and attract foreign capital. e. all currencies were defined in terms of gold. when a nation had a deficit in its balance of payments, more gold was flowing in than was flowing out. All of the above are correct.

MACROECONOMICS

14th Edition

ISBN:9781337794985

Author:Baumol

Publisher:Baumol

Chapter19: The International Monetary System: Order Or Disorder

Section: Chapter Questions

Problem 4DQ

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