Under the gold standard, a nation with a private balance of payments surplus would experience:

Question

Quizplus · Accepted Answer

Under the gold standard, a nation with a private balance of payments surplus would see an inflow of gold, which would increase the money supply. This would lead to lower interest rates, higher inflation due to the increased money supply, and higher output as a result of lower borrowing costs and increased spending.

Under the Gold Standard, a Nation with a Private Balance