Suppose the world was on the gold standard.If Japan ran persistent trade surpluses,

A) Japan's money supply would increase.
B) Japan would experience inflation.
C) Japan's exports would fall.
D) Japan's imports would rise.
E) All of the choices are true.

Question

rhema Chapuma · Accepted Answer

Final Answer : E, Explanation :  Under the gold standard, a country with a trade surplus would receive gold from other countries, increasing its money supply. This increase in money supply could lead to inflation. As the country's currency becomes stronger due to the gold inflow, its exports could become more expensive for other countries, potentially reducing exports. Conversely, imports could become cheaper for the country experiencing the trade surplus, leading to an increase in imports.

Suppose the world was on the gold standard.If Japan ran persistent trade surpluses,

A) Japan's money supply would increase.
B) Japan would experience inflation.
C) Japan's exports would fall.
D) Japan's imports would rise.
E) All of the choices are true.

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Learning Objectives

Related questions

Suppose the world was on the gold standard.If Japan ran persistent trade surpluses,A) Japan's money supply would increase.B) Japan would experience inflation.C) Japan's exports would fall.D) Japan's imports would rise.E) All of the choices are true.

Definitions

Learning Objectives

Learning Objectives

Related questions

Suppose the world was on the gold standard.If Japan ran persistent trade surpluses,

A) Japan's money supply would increase.
B) Japan would experience inflation.
C) Japan's exports would fall.
D) Japan's imports would rise.
E) All of the choices are true.