Under the gold standard,a country in balance-of-trade equilibrium will experience a net inflow of gold from other countries.

Question

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Under the gold standard, a country in balance-of-trade equilibrium will not experience a net inflow or outflow of gold from other countries. In other words, the exports and imports will usually balance each other out and there will be no need for gold to flow in or out of the country. However, if a country experiences a trade deficit, it may need to pay for the excess imports with gold, leading to a net outflow of gold. Similarly, if a country experiences a trade surplus, it may receive gold in exchange for its exports, leading to a net inflow of gold.

Under the Gold Standard,a Country in Balance-Of-Trade Equilibrium Will Experience