Suppose we are under a gold standard, and England sets its gold orice at 8 pounds per ounce of gold and the US sets its gold price at $38 per ounce of gold. The value of the pound in terms of the dollar is: A 8 dollars B. 47.5 dollars C..21 dollars 475 d021 20 dollars

Suppose there is an increase in the foreign interest rate. Under a floating exchange rate system A. Domestic interest rates must rise in order to maintain interest parity B. The value of the foreign currency in terms of the domestic currency will rise, and domestic output will fall but the current account will improve C. The value of the foreign currency in terms of the domestic currency will rise, and domestic output will rise due to the increase in the domestic current account. D. The value of the toreign currency ir terms of the domestic must first overshoot its long-fun value. Domestic interest rates will have to rise as well, but will eventually fall as the exchange reaches its long-run equilibrium 5. None of the a pove