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Macroeconomics 11th Edition by Stephen Slavin
Edition 11ISBN: 978-0077641559Macroeconomics 11th Edition by Stephen Slavin
Edition 11ISBN: 978-0077641559 Exercise 47
Circle the letter that corresponds to the best answer. Suppose the world was on the gold standard. If Peru ran persistent trade deficits, ________.
A) Peru would be able to continue doing so with no consequences
B) Peru's money stock would decline, its prices would fall, and its trade deficit disappear
C) Peru would soon suffer from inflation
D) Peru would raise tariffs and prohibit the shipment of gold from the country
A) Peru would be able to continue doing so with no consequences
B) Peru's money stock would decline, its prices would fall, and its trade deficit disappear
C) Peru would soon suffer from inflation
D) Peru would raise tariffs and prohibit the shipment of gold from the country
Explanation
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Verified
On the gold standard, countries cannot s...
Macroeconomics 11th Edition by Stephen Slavin
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