Home › Bihar Board Class 12 (Arts) › Economics › Open Economy Macroeconomics › In gold standard adjustment, a gold inflow raise…
In gold standard adjustment, a gold inflow raises money supply and leads to
AFalling prices
BInflation
CHigher exports
DLower imports
Answer & Solution
Correct answer: B. Inflation
More gold expands the money supply, which pushes domestic prices up.
Related questions
Which of these is part of the current account as per the BoP definition?If outflows exceed inflows, all else equal, a currency is likely to come under pressure toAfter Bretton Woods, the principal de facto reserve currency has been theA stronger currency tends to make a nation's exportsWho developed the theory of comparative advantage?Which 1997 event led emerging economies to rethink reliance on free markets?A BoP crisis occurs when a nation cannot pay forThe Bretton Woods system came to an end between which years?