Under the gold standard:
A) nations can protect their domestic price and employment levels from changes in the volume and direction of world trade.
B) exchange rates were virtually fixed.
C) differences in exports and imports will be precisely balanced by long-term capital flows.
D) exchange rates fluctuate freely in response to changes in the supply of, and demand for, foreign monies.
Correct Answer:
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Q107: The graph below shows the supply and
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