_____________ represents the fixed exchange rates defined by the gold content of each nation's currency.
A)Purchasing power parity
B)Pass through
C)Mint parity
D)Price-specie-flow

Question

Quizplus · Accepted Answer

Mint parity represents the fixed exchange rates defined by the gold content of each nation's currency. This system was prevalent in the period from the late 19th to early 20th century. Purchasing power parity refers to the theory that exchange rates should adjust to equalize the price of a basket of goods in two countries. Pass-through refers to the extent to which changes in exchange rates affect import and export prices. Price-specie-flow mechanism is a theory that explains how gold flows between countries to correct trade imbalances under a fixed exchange rate regime.

_____________ Represents the Fixed Exchange Rates Defined by the Gold