Question :
19.3 International Macroeconomic Policy under the Gold Standard, 1870-1914
1) Under : 1303662
19.3 International Macroeconomic Policy under the Gold Standard, 1870-1914
1) Under the price-specie-flow mechanism, what happens when, say, Germany’s current account surplus is greater than its non-reserve capital account deficits?
A) German loans will finance all foreign net imports.
B) Automatic drop in German domestic prices and rise in foreign prices.
C) Gold reserves will flow into Germany.
D) Gold reserves will flow out of Germany.
E) Germany will experience a deficit.
2) The “rules of the game” under the gold standard can best be described as which of the following:
A) selling domestic assets in a deficit and buying assets in a surplus.
B) slowing down the automatic adjustments processes inherent in the gold standard.
C) selling domestic assets in order to accumulate gold.
D) selling foreign assets in a deficit and buying foreign assets in a surplus.
E) selling domestic assets in a surplus.
3) L. Frank Baum’s classic 1900 children’s book, The Wonderful Wizard of Oz, is
A) an allegorical rendition of the U.S. political struggle over silver.
B) an allegorical rendition of the U.S. political struggle over copper.
C) an allegorical rendition of the U.S. political struggle over both silver and gold.
D) an allegorical rendition of the U.S. political struggle over indebted farmers.
E) an allegorical rendition of the U.S. political struggle over gold.
4) Mercantilism held that
A) silver alone was the mainstay of national wealth.
B) gold alone was the mainstay of national wealth.
C) silver and gold were the mainstays of national wealth.
D) silver and gold are not important for national wealth of a country.
E) labor forces were the mainstay of national wealth.
5) The main policy goal for a country according to the mercantilists is
A) to create a one-time deficit in the balance of payments.
B) to create a continuing deficit in the balance of payments.
C) to create a one-time surplus in the balance of payments.
D) to create a continuing surplus in the balance of payments.
E) to create specie overflows.
6) The view of mercantilists can be summarized as follows
A) to sell less to strangers yearly than we consume of theirs in value.
B) to sell more to strangers yearly than we consume of theirs in value.
C) to consume more of theirs in value than we sell to strangers.
D) to consume the same amount as theirs in value as we sell to strangers.
E) to sell gold and silver to strangers in exchange for services.
7) Until the United States Civil War, The Unites States had a
A) gold-based monetary standard.
B) silver-based monetary standard.
C) bimetallic monetary standard consisting of silver and gold.
D) bimetallic monetary standard consisting of copper and silver.
E) bimetallic monetary standard consisting of copper and gold.
8) In L. Frank Baum’s classic 1900 children’s book, The Wonderful Wizard of Oz, the name “oz” is a reference to
A) an ounce (oz.) of gold.
B) an ounce (oz.) of silver.
C) an ounce (oz.) of copper.
D) an ounce (oz.) of gold or silver.
E) an ounce (oz.) of wheat.
9) Under the gold standard era of 1870-1914
A) Tokyo was the center of the international monetary system.
B) Paris was the center of the international monetary system.
C) Berlin the center of the international monetary system.
D) New York was the center of the international monetary system.
E) London was the center of the international monetary system.
10) Under the gold standard era of 1870-1914
A) central banks tried to have sharp fluctuations in the balance of payments.
B) central banks tried to avoid sharp fluctuations in the current account of the balance of payments.
C) central banks tried to avoid sharp fluctuations in the trade account of the balance of payments.
D) central banks tried to avoid sharp fluctuations in the capital account of the balance of payments.
E) central banks tried to avoid sharp fluctuations in the balance of payments.
