Author Question: A country on a gold standard was able to maintain people's confidence in the value of its currency ... (Read 66 times)

jman1234 · **on:** Jun 30, 2018

A country on a gold standard was able to maintain people's confidence in the value of its currency by:
a. printing more and more paper money.
b. restricting international exchange of goods and services.
c. ensuring the convertibility of paper money into gold.
d. maintaining a fixed stock of foreign currencies.
e. ensuring balance of payment surplus.

Question 2

Which of the following is an incorrect observation?
a. Import tariffs benefit domestic producers and the government, but harms domestic consumers.
b. Gains from trade in terms of world output are reduced by export subsidies.
c. The overall domestic employment effects of a tariff imposition are likely to be positive.
d. If the imposition of a tariff leads to retaliatory tariffs by other countries, domestic employment outside the industry gaining the tariff protection would likely suffer.