After Britain Returned to the Gold Standard in the 1920s

Multiple Choice

After Britain returned to the Gold Standard in the 1920s, the British pound was:

A) undervalued, contributing to a long period of inflation.
B) overvalued, contributing to a long period of recession.
C) overvalued, contributing to a long period of inflation.
D) undervalued, contributing to a long period of recession.
E) valued about right, leading to a long period of healthy growth with almost no inflation.