If the U.S.were to revert to a gold standard, trade deficits would:

Name: If the U.S.were to revert to a gold standard, trade deficits would:
Brand: Quizplus
Rating: 4.8 (46 reviews)

Question

Quizplus · Accepted Answer

Under a gold standard, the value of a currency is directly tied to the value of gold. If a country runs a trade deficit, it means they are importing more than they are exporting, resulting in more outflow of currency than inflow. This will cause the gold reserves to decrease as they will have to use the reserves to pay for the imports.

If the USWere to Revert to a Gold Standard, Trade Deficits Would