The great strength claimed for the gold standard was that it contained a powerful mechanism for simultaneously achieving balance-of-trade equilibrium by all countries.

Question

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The gold standard was designed to maintain a fixed exchange rate between currencies by allowing them to be exchanged for a fixed amount of gold. This meant that countries had to maintain a balance between their imports and exports in order to avoid losing gold reserves. Therefore, the gold standard provided a mechanism for achieving balance-of-trade equilibrium by all countries.

The Great Strength Claimed for the Gold Standard Was That