The "rules of the game" under the gold standard can best be described as which of the following:
A) selling domestic assets in a deficit and buying assets in a surplus.
B) slowing down the automatic adjustments processes inherent in the gold standard.
C) selling domestic assets in order to accumulate gold.
D) selling foreign assets in a deficit and buying foreign assets in a surplus.
E) selling domestic assets in a surplus.

Question

Quizplus · Accepted Answer

Under the gold standard, countries with a balance of payments deficit would sell domestic assets to obtain gold, while those with a surplus would buy assets to prevent excessive gold inflow.

The "Rules of the Game" Under the Gold Standard Can