Suppose the world was on the gold standard.If Japan ran persistent trade surpluses,

Name: Suppose the world was on the gold standard.If Japan ran persistent trade surpluses,
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Under the gold standard, persistent trade surpluses would lead to an inflow of gold into Japan, increasing its money supply (A), which could cause inflation (B). As a result of inflation, Japan's exports might become less competitive, leading to a decrease (C), while imports might become cheaper, leading to an increase (D).

Suppose the World Was on the Gold Standard