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Author Question: Under the Gold standard, a country is said to be in balance of payments equilibrium when the current ... (Read 48 times)

Pea0909berry

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on: Jun 30, 2018
Under the Gold standard, a country is said to be in balance of payments equilibrium when the current account balance is
 
  A) financed entirely by international lending without reserve movements.
  B) financed by international lending and with reserve movements.
  C) equal to zero.
  D) financed entirely by international lending and past gold reserves.
  E) financed entirely by gold reserves.

Question 2

Strategic trade policy considerations imply that free trade policies should never be pursued.
 
  Indicate whether the statement is true or false


katheyjon

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Reply #1 on: Jun 30, 2018
Answer to Question 1

A

Answer to Question 2

FALSE
Explanation: Such policies are very difficult to implement without lowering welfare.


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