Under the gold standard,a nation with a current-account surplus would realize gold outflows,a decrease in its money supply,and a fall in its domestic price level.

Question

Quizplus · Accepted Answer

Under the gold standard, a nation with a current-account surplus would experience an inflow of gold, an increase in its money supply, and a rise in its domestic price level. This is because an increase in the supply of gold would lead to an increase in the money supply, which would in turn lead to an increase in prices. Conversely, a current-account deficit would result in an outflow of gold, a decrease in the money supply, and a decrease in the domestic price level.

Under the Gold Standard,a Nation with a Current-Account Surplus Would