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    International Economics Study Set 7
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    Exam 16: The Price Adjustment Mechanism With Flexible and Fixed Exchange Rates
  5. Question
    Explain Why Under a Gold Standard Exchange Rate System That
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Explain Why Under a Gold Standard Exchange Rate System That

Question 16

Question 16

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Explain why under a gold standard exchange rate system that the market exchange rate will never deviate far from the mint parity rate.

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The mint parity rate is the ratio of wha...

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