Which of the following statements is correct?
A) Under the gold standard, exchange rates fluctuate without restraint and thereby correct any international balance of payment disequilibrium
B) If nations X and Y are on the international gold standard, and X's exports to Y exceed X's imports from Y, then gold will flow from X to Y
C) If the dollar price of pounds rises, then the pound price of dollars will also rise
D) American exports tend to increase, while American imports tend to decrease, the supplies of foreign monies owned by American banks
Correct Answer:
Verified
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