In the 1960's the United States had a large balance of payments deficit due in large part to:

Question

Quizplus · Accepted Answer

When the USD was fixed at $35 per ounce of gold, it was actually overvalued. This led to the outflow of gold reserves as other countries and investors exchanged their dollars for gold, which put pressure on the US balance of payments. This was one of the contributing factors to the large balance of payments deficit in the 1960s.

In the 1960's the United States Had a Large Balance