Question

please answer all accordingly

1. In the nineteenth century many industrial countries adopted the gold standard because adopted the gold standard. a. Britain b. France c. Germany d. United States e. China 2. Under the gold standard a country whose prices were unusually high compared with the rest of the world would find that it would__gold, and that its prices would a, gain, fall into line with the rest of the world b. gain, rise still farther out of line with the rest of the world close, fall into line with the rest of the world d. lose, rise still farther out of line with the rest of the world 3. Under the classical gold standard exchange rate were fixed because each country on the gold standard a. bought and sold gold at a predetermined price in terms of its own currency b. set its price of gold equal to the world market price c. altered the domestic price of gold to offset changes in exchange rates d. altered the domestic price of gold to offset changes in the price level 4. The price level began to rise after 1896 until World War I. In class I attributed this rise to a. Federal Reserve policies b. Bank of England policies c. U.S. trade deficits and the falling dollar d. discoveries of gold in South Africa 5. According to the rules of the gold standard game the central bank of a country on the gold standard that is running a balance of payments deficit should a. raise the interest rate it charges on loans b. lower the interest rate it charges on loans c. buy government bonds d. buy private debt 6. One major cost of the classical gold standard compared with modern monetary systems was that a. exchange rates were uncertain under the gold standard b. long-term inflation was higher under the gold standard C. central banks might not have enough gold to alleviate a panic d. international capital flows were discouraged by the gold standard

Answer 1

1. a. Britain

2. a. Under the gold standard, a country whose prices were unusually high compared with the rest of the world would find it would gain gold, and its prices would fall in line with the rest of the world.

3. a. Under the classical gold standard exchange system, exchange rates were fixed because each country sets a fixed price for gold and buys and sells gold at that price

4. d. The price level rose after 1896 until WW1 due to the discovery of gold in South Africa

Can answer 4 questions at a time