Chap002 6 - D none of the above 20...

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18. One potential drawback of the gold standard is that A. the world economy can be subject to deflationary pressure due to the limited supply of monetary gold. B. the world economy can be subject to inflationary pressure without changes in the supply of monetary gold. C. gold is scarce. D. all of the above 19. The first full-fledged gold standard A. was not established until 1821 in Great Britain, when notes from the Bank of England were made fully redeemable for gold. B. was not established until 1780 in the United States, when notes from the Continental Army were made fully redeemable for gold. C. was established in 986 during the Han dynasty in China.
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Unformatted text preview: D. none of the above 20. An "international" gold standard can be said to exist when A. gold alone is assured of unrestricted coinage. B. there is two-way convertibility between gold and national currencies at stable ratios. C. gold may be freely exported or imported. D. all of the above 21. Under a gold standard, if Britain exported more to France than France exported to Great Britain, A. such international imbalances of payment will be corrected automatically. B. this type of imbalance will not be able to persist indefinitely. C. net export from Britain will be accompanied by a net flow of gold in the opposite direction. D. all of the above...
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This note was uploaded on 11/09/2011 for the course FIN IFMG201 taught by Professor Eun during the Spring '11 term at Michigan Flint.

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