Question 1
Under the gold standard, ________ if the country's overall balance of payments remained in balance.
◦ gold would enter the country
◦ gold would leave the country
◦ no gold would enter or leave the country
◦ Both gold would enter the country and gold would leave the country are correct.
Question 2
Under the gold standard, if gold was flowing from the U.S. to Great Britain, the U.S. would experience which of the following?
◦ lower interest rates
◦ increasing aggregate demand
◦ lower prices
◦ rising income