Under a gold standard,if a country exported more than it imported,its gold supply would
A) rise and its price level would fall.
B) fall and its price level would rise.
C) rise and so would its price level.
D) fall and so would its price level.
E) fall but its price level would remain unchanged.

Question

Quizplus · Accepted Answer

Under a gold standard, if a country exported more than it imported, it would receive gold in payment, increasing its gold supply. This increase in gold would lead to an increase in the money supply, which would typically cause the price level to rise.

Under a Gold Standard,if a Country Exported More Than It