Which of the Following Statements Is True of a Country

Multiple Choice

Which of the following statements is true of a country that has a gold standard exchange
Rate system?

A) A country running a deficit in its balance of payment would experience an outflow of gold which would force it to increase the price of gold.
B) A country running a deficit in its balance of payment would experience an outflow of gold which would force it to decrease the price of gold.
C) A country running a deficit in its balance of payment would experience an outflow of gold which would force it to reduce its money supply.
D) A country running a deficit in its balance of payment would experience an outflow of gold which would force it to increase its money supply.