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

Question

Quizplus · Accepted Answer

Under the gold standard, a country in balance-of-trade equilibrium will not experience a net flow of gold from other countries. In fact, an outflow of gold would indicate a trade deficit and an inflow of gold would indicate a trade surplus, leading to an adjustment in exchange rates to restore balance.

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