If a country were operating under a gold standard, a balance of payments surplus would lead to an _____ of gold and a(n) _____ in the money supply.

Question

Quizplus · Accepted Answer

Under a gold standard, a balance of payments surplus means that a country is exporting more than it is importing, leading to an inflow of gold. This inflow of gold would increase the country's money supply, as the amount of gold held by the country directly influences its money supply.

If a Country Were Operating Under a Gold Standard, a Balance