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Cissen and Napor Are Two Neighboring Countries That Actively Trade

Question 26

Multiple Choice

Cissen and Napor are two neighboring countries that actively trade goods and services with each other. Under the gold standard, there will be a net flow of gold from Napor to Cissen when


A) Cissen is in trade deficit with Napor.
B) Napor is in balance-of-trade equilibrium with Cissen.
C) Cissen is in trade surplus with Napor.
D) Cissen imports more than it exports to Napor.
E) Napor balance of payment to Cissen is favorable.

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