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1 Those countries who are experiencing positive balance of payments will effectively import gold for exports. Since gold is currency it will lead to rise in inflation. As a result imports will be promoted as they are now cheap relatively and exports will fall as they are now more costly for foreigners
2 The country having negative Bop situation will see deflation due to export of gold. AS a result its imports will fall since they are now relatively costly and its exports will rise since they are now cheap for foreigners
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Briefly describe the following The price-specie flow mechanism under the gold standard for a country with...
Describe the relative price effect of the price specie flow mechanism
Describe the relative price effect of the price specie flow mechanism
The automatic counter cyclical mechanism that restores employment under the Gold Standard is possible because despite...
The automatic counter cyclical mechanism that restores employment under the Gold Standard is possible because despite the change in the general level of prices, there is one price, the price of gold, in the economy that will not change. True False
The gold system is a monetary system where a country’s currency is directly linked to gold. A country that uses the gold standard sets a fixed price for gold and that price determines the value of the...
The gold system is a monetary system where a country’s currency is directly linked to gold. A country that uses the gold standard sets a fixed price for gold and that price determines the value of the currency. The gold standard was first put into operation in the UK in 1821. The UK stopped using it in 1931 and the US followed suit in 1933. The gold standard is currently not used by any government. The appeal of the gold...
please answer all accordingly 1. In the nineteenth century many industrial countries adopted the gold standard...
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...
Which of the following is NOT one of the rules for a gold standard? a. Each...
Which of the following is NOT one of the rules for a gold standard? a. Each country should fix the value of its currency in terms of gold. b. Capital controls should be used to conserve each country's gold holdings. c. There should be an unrestricted flow of gold between countries d. The central bank in each country should hold gold reserves in a direct relationship to the currency it issues. Which of the following best describes a situation in...
Briefly describe the difference between the mechanism of an oral or English auction and a Vickery...
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A new test was compared with a gold standard measurement with the following results Sensitivity Specificity...
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Which of the following is NOT true? Question 24 options: Under the gold standard, each currency...
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Under the Gold Standard the world-wide price level is determined endogenously True False A furniture manufacturing...
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4. Please briefly describe the functions of money according to theory of money. What is the...
4. Please briefly describe the functions of money according to theory of money. What is the main difference between the narrow definition of money and broad definitions of money? Give an example for each definitions by using money definitions of the Central Bank of Turkey. (15 pts.) 5. Please kindly select the True/False expressions for the following choices: (20 pts.) a) A period of very rapid increase in the overall price level is known as b) If the labor force...
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...
Which of the following is NOT one of the rules for a gold standard? a. Each country should fix the value of its currency in terms of gold. b. Capital controls should be used to conserve each country's gold holdings. c. There should be an unrestricted flow of gold between countries d. The central bank in each country should hold gold reserves in a direct relationship to the currency it issues. Which of the following best describes a situation in...
4. Please briefly describe the functions of money according to theory of money. What is the main difference between the narrow definition of money and broad definitions of money? Give an example for each definitions by using money definitions of the Central Bank of Turkey. (15 pts.) 5. Please kindly select the True/False expressions for the following choices: (20 pts.) a) A period of very rapid increase in the overall price level is known as b) If the labor force...
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