If the United States were running large trade deficits with Germany under an international gold standard system, we would expect which of the following to occur? The money supply in Germany would increase all of the other choices U.S. gold reserves would decrease Germany's gold reserves would increase. The money supply in the U.S. would decrease. none of the other choices

Economics: Private and Public Choice (MindTap Course List)
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Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
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Chapter19: International Finance And The Foreign Exchange Market
Section: Chapter Questions
Problem 15CQ
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If the United States were running large trade deficits with Germany under an international gold standard system, we would expect which of the following to occur?

  1. The money supply in Germany would increase
  2. all of the other choices
  3. U.S. gold reserves would decrease
  4. Germany's gold reserves would increase.
  5. The money supply in the U.S. would decrease.
  6. none of the other choices
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