Suppose the world was on the gold standard. If Peru ran persistent trade deficits, _________. a) Peru

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Suppose the world was on the gold standard. If Peru ran persistent trade deficits, _________.

a) Peru would be able to continue doing so with no consequences

b) Peru’s money stock would decline, its prices would fall, and its trade deficit disappear

c) Peru would soon suffer from inflation

d) Peru would raise tariffs and prohibit the shipment of gold from the country.

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Microeconomics

ISBN: 9780077641542

11th Edition

Authors: Stephen Slavin

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Question Posted: Mar 01, 2024 11:01 PM

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Suppose the world was on the gold standard. If Peru ran persistent trade deficits, _________. a) Peru

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Microeconomics

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