Please briefly describe what is meant by a gold exchange ...

[xroflmao]

Please briefly describe what is meant by a gold exchange standard.
 
  What will be an ideal response?

Question 2

If a good is imported into (small) country H from country F, then the imposition of a tariff In country H
 
  A) raises the price of the good in both countries (the Law of One Price).
  B) raises the price in country H and does not affect its price in country F.
  C) lowers the price of the good in both countries.
  D) lowers the price of the good in H and could raise it in F.
  E) raises the price of the good in H and lowers it in F.

[macybarnes]

Answer to Question 1

Under a gold exchange standard, central banks' reserves consist of gold and currencies whose price in terms of gold are fixed, and each central bank fixes its exchange rate to a currency with a fixed gold price. The post-WWII currency system was supposed to be a gold exchange standard with the U.S. responsible for fixing the price of gold at 35 per ounce.

Answer to Question 2

B

[xroflmao]

Gracias!

[aruss1303]

Thanks for the timely response, appreciate it