« previous next »

Author Question: Explain the three rules that countries must follow to maintain a gold standard. What will be an ... (Read 83 times)

clmills979

  • Hero Member
  • *****
  • Posts: 551
on: Jun 30, 2018
Explain the three rules that countries must follow to maintain a gold standard.
 
  What will be an ideal response?

Question 2

Mercantilists perceived trade as a zero sum game.
 
  Indicate whether the statement is true or false
International Economics ¦ Gerber ¦ 6th Edition
Buy Test-Bank


otokexnaru

  • Sr. Member
  • ****
  • Posts: 314
Reply #1 on: Jun 30, 2018
Answer to Question 1

First, they must fix the value of their currency unit in terms of gold. The second rule of the gold standard is that nations keep the supply of their domestic money fixed in some constant proportion to their supply of gold. The third rule of a gold standard is that nations must stand ready and willing to provide gold in exchange for their home country currency.

Answer to Question 2

TRUE


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Essential fatty acids have been shown to be effective against ulcers, asthma, dental cavities, and skin disorders such as acne.

Did you know?

Many people have small pouches in their colons that bulge outward through weak spots. Each pouch is called a diverticulum. About 10% of Americans older than age 40 years have diverticulosis, which, when the pouches become infected or inflamed, is called diverticulitis. The main cause of diverticular disease is a low-fiber diet.

Did you know?

Though newer “smart” infusion pumps are increasingly becoming more sophisticated, they cannot prevent all programming and administration errors. Health care professionals that use smart infusion pumps must still practice the rights of medication administration and have other professionals double-check all high-risk infusions.

Did you know?

Individuals are never “cured” of addictions. Instead, they learn how to manage their disease to lead healthy, balanced lives.

Did you know?

In 1844, Charles Goodyear obtained the first patent for a rubber condom.

Reccomendations for blood pressure follow-up Reccomendations for blood pressure follow-up
Countries of Origin of Asian Americans Countries of Origin of Asian Americans
Standard Precautions for the Care of all Patients in All Health Care Settings Standard Precautions for the Care of all Patients in All Health Care Settings
Standard Precautions for the Care of all Patients in All Health Care Settings Standard Precautions for the Care of all Patients in All Health Care Settings
The developed countries must reduce the level of greenhouse gas emissions The developed countries must reduce the level of greenhouse gas emissions
Desired Fertility versus Total Fertility Rate in Developing Countries Desired Fertility versus Total Fertility Rate in Developing Countries
Video: HDL (high density lipoprotein)

For a complete list of videos, visit our video library