Under a gold standard, countries should Group of answer choices keep the supply of their domestic money constant. keep the supply of their domestic money fixed in proportion to their gold holdings. keep the supply of foreign exchange less than their domestic money supply. restrict the demand for foreign goods. outlaw speculation.

Q: When the Australian dollar appreciates, we know that, other things equal:the dollar is less…

A: The exchange rate determines the price of the currency of a domestic country when it is exchanged…

Q: Suppose that Canada and Mexico allow their currencies to float. Other things equal, if the Canadian…

A: In the floating exchange rate (also known as flexible exchange rate) the country's currency will be…

Q: Which of the following is NOT one of the charges of the International Monetary Fund? The IMF is…

A: International monetary fund is the apex body which is Mandate to oversee a international financial…

Q: Display graphically changes in the value of domestic currency, if the domestic productivity growth…

A: The value of domestic currency reflects the relative exchange rate of that currency. It is the rate…

Q: when a central bank increases the nominal interest rate, but the real interest rate remains the…

A: Nominal interest rate is the interest rate that is calculated before taking inflation into account.…

Q: If Brazil’s current account balance is -150b and its financial account balance is +130b, what must…

A: Balance of Payment is the sum of balance of current account, capital account and financial account.…

Q: According to your text, the US should not return to a gold standard because a gold standard is least…

A: The central bank manages the supply of money in the economy via monetary tools such as adjustments…

Q: The Chinese yuan/RMB is not a widely used currency for trade or investment purposes. Why is this?…

A: The Chinese yuan was formerly tied to the US dollar for several years. This strategy maintains the…

Q: The gold standard likely facilitated the Great Depression because Group of answer choices the Fed…

A: The collapse of gold standard has a significant contribution in the occurrence of the Great…

Q: Over the past three decades, trade and investment between countries in East and Southeast Asia have…

A: The concept of a single currency for East and Southeast Asia is intriguing, and its feasibility can…

Q: How do varying monetary policy stances between two economically intertwined countries affect their…

A: The issue is to comprehend the impacts of varying financial arrangement positions between two firmly…

Q: Disadvantages of a single currency, for example the Eurozone

A: Macroeconomics is a part of economics that deals with production, decision and allocation concerning…

Q: Identify whether each attribute in the following table is an advantage or disadvantage of sharing a…

A: Approach to solving the question: Detailed explanation:  Examples: Key references:

Q: Which best explains why U.S. businesses want the U.S. dollar to decrease in value against the…

A: The exchange rate measures a currency's value in terms of another. A currency depreciates when its…

Q: A strong euro is less favorable for: a) American tourists traveling in France. b) German tourists…

A: The question is asking us to identify which group would be negatively affected by a strong euro. The…

Q: Years ago when banks generated bank notes on their deposits that citizens used as currency, they…

A: The monetary system of US is based on paper money with full credit of the central government.…

Q: Explain the theory of purchasing power parity (PPP). Based on this theory, what is a general…

A: Purchasing power parity came from believes of right to exchange  for all the individuals at any part…

Q: The incompatible trinity, also known as the trilemma, states that it is impossible to have all three…

A: The objective of the question is to calculate the rate of real appreciation of the yuan when the…

Q: You are advising a small country on whether to print its own money or to use the money of its larger…

A: Currency alludes to an arrangement of money that is utilized as a medium of exchange for goods and…

Q: Currency A weakened by 7.2% against currency B in 2020 compared to 2019. In this case: Currency B…

A: In the international market, the value of one currency is derived by comparing the currency with the…

Q: If the yen appreciates in value, then:   Question 3 options:   It is more expensive for Americans…

A: In the mentioned question we have been asked if yen appreciates then what happened.

Q: An important problem with the gold standard was that one country could easily manipulate the system…

A: The gold standard operated in the period between 1870-1914 and under the gold standard, the main…

Q: Which of the following are included in economist Robert Mundell's requirements for an optimal…

A: Robert mundell proposed theoretical grounds to merge or share a single currency across difference…

Q: Which group will most likely be negatively affected if the U.S. dollar drops in value against the…

A: If the U.S. dollar drops in value against the British pound, then the British pound will get strong…