Suppose That at the Fixed Exchange Rate Implied by the Gold

Multiple Choice

Suppose that at the fixed exchange rate implied by the gold standard, the quantity supplied of Podgland's currency exceeded the quantity demanded. This implies that

A) Podgland has a surplus in its balance of payments.
B) Podgland has a deficit in its balance of payments.
C) Podgland has a surplus in its capital account.
D) The exchange rate will fall to restore equilibrium.