Solved

Consider Two Countries, Mondrain and Davenport That Are on the Gold

Question 21

Multiple Choice

Consider two countries, Mondrain and Davenport that are on the gold standard exchange rate system. Suppose the exchange rate between monds (Mondrain's currency) and divas (Davenport's currency) is 4 divas per mond and the price of gold in Mondrain is fixed at 60 monds per ounce of gold. What is the price of gold in Davenport?


A) 6.66 divas per ounce of gold
B) 15 divas per ounce of gold
C) 24 divas per ounce of gold
D) 240 divas per ounce of gold

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q16: In the short run, an increase in

Q17: It is impossible to have a current

Q18: The newspapers often use the terms "a

Q19: The current account is<br>A) an accounting statement

Q20: Explain how exchange rates are determined in

Q22: Use the following to answer questions .<br>Exhibit:

Q23: If the U.S. has a capital account

Q24: If each nation specializes and produces those

Q25: During the economic downturn of 2008-2011, the

Q26: Between 1990 and 2010, world exports have<br>A)