Under the gold standard system, 1 ounce of gold was worth $23 in the United States and worth 15.5 pounds in Great Britain. If the price of gold in Great Britain decreases by 10%, then:
A) the new exchange rate would show approximately 10% depreciation of the dollar.
B) $1 = 1.64 pounds.
C) 1 pound = $1.64.
D) the new exchange rate would show approximately 10% depreciation of the dollar, and 1 pound would be equal to $1.64.
Correct Answer:
Verified
Q151: What best describes what makes a cooperative
Q152: Suppose that the United States and the
Q153: What happened to the international gold standard
Q154: A country is using a beggar-thy-neighbor policy
Q155: Under the gold standard system, if the
Q157: Under a gold standard, as trade takes
Q158: Suppose that international trade is the only
Q159: During which period in history were the
Q160: Trilemma refers to policy conflicts among:
A) fixed
Q161: In the 1930s, some nations such as
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents