Under a gold standard,if Britain exports more to France than France exports to Great Britain,

Question

Quizplus · Accepted Answer

Under the gold standard, international imbalances of payment are corrected automatically through the adjustment of exchange rates, meaning that option A is correct. This type of imbalance cannot persist indefinitely due to the correction mechanism, so option B is also correct. Furthermore, net exports from Britain will be accompanied by a net flow of gold in the opposite direction, as countries settle their balances in gold, so option C is also correct. Therefore, all options are correct, and the answer is D.

Under a Gold Standard,if Britain Exports More to France Than