Under the gold standard,a country experiencing a fall in its gold reserves was supposed to:

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Under the gold standard, a country experiencing a fall in its gold reserves was supposed to cut loans in order to reduce the outflow of gold. This was done to help maintain the value of the currency and to ensure that the country's central bank had enough reserves to back its currency. By cutting loans, the central bank could reduce the amount of money in circulation and discourage people from converting their currency into gold. This policy was known as "deflationary" because it led to a reduction in the money supply and a decrease in the price level.

Under the Gold Standard,a Country Experiencing a Fall in Its