Under a gold standard, a balance of payments disequilibrium would be corrected automatically by

A) the depreciation of that country's currency.
B) an increase in the gold content of that nation's monetary unit.
C) the appreciation of that country's currency.
D) an outflow or inflow of gold.

Gold Standard

A financial regime in which the value of a nation's currency or banknotes is directly tied to the value of gold.

Balance of Payments

A financial statement summarizing a country's transactions with the rest of the world over a specified period, including trade, investment, and financial transfers.

Depreciation

The process of allocating the cost of a tangible asset over its useful life, reflecting wear and tear or obsolescence.