Asked by Haley Smith on Jul 30, 2024
Verified
If the United States and France are both on the international gold standard and U.S. exports to France exceed United States imports from France, gold will flow from the United States to France.
International Gold Standard
A monetary system in which the standard economic unit of account is based on a fixed quantity of gold, facilitating international trade and investment.
Exports
Products or services traded or sold from one nation to another.
Imports
Purchased goods or services brought into one country from another.
- Elucidate the processes underlying the international gold standard and its impact on currency values.
- Recognize the structure and components of a nation's balance of payments.
Verified Answer
DH
Dorothy HuangAug 05, 2024
Final Answer :
False
Explanation :
Under the gold standard, if the U.S. exports to France exceed its imports from France, gold would flow from France to the U.S. to balance the trade, as France would need to pay for its net imports from the U.S. in gold.
Learning Objectives
- Elucidate the processes underlying the international gold standard and its impact on currency values.
- Recognize the structure and components of a nation's balance of payments.
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