Calls for a new gold standard reflect a fundamental distrust of government's willingness to maintain the integrity of fiat money b. a general willingness to accept fiat money c. a short memory of what actually transpired under the gold standard d. the durability and desirability of gold Under the gold standard a price levels rose dramatically b. price levels stayed constant over time the long-run stability of the price level includes alternating periods of inflation and deflation d fiat money is more valuable Under a fixed-rate system, a country that followed policies that would lead to a higher rate of inflation than that experienced by its trading partners would experience a balance-of-payments deficit as its goods became more see a decrease in the supply of its currency on the foreign exchange markets find its currency exchange rate subject to upward pressure experience a balance-of-payments surplus. Under a fixed-rate system, a country that followed policies leading to a lower inflation rate then that experienced by its trading partners would a come under pressure to expand its money supply b. restrict the growth of its money supply c. experience a balance-of-payments deficit d. be forced to buy its currency in the foreign exchange market S. Underlying the emerging markets currency crises is a fundamental conflict among policy objectives that the target nations have failed to resolve. Which one of the following is NOT? IMF bailouts b. fixed exchange rates e independent domestic monetary policy d. free capital movement In a fixed-rate system, central banks maintain currency values by a reducing the money supplies of nations with overvalued currencies b. boosting the money supplies of nations with undervalued currencies c. buying up overvalued currencies in the foreign exchange market d. buying undervalued currencies in the foreign exchange market Governments intervene in the foreign exchange markets for all of the blowing except to 7. carn foreign exchange reduce economic uncertainty improve the nation's export competitiveness reduce inflation