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ELEN [110]
2 years ago
5

Under the gold standard, a country in balance-of-trade equilibrium earns income from exports that is equal to the money its resi

dents pay for imports. Group of answer choices True False
Chemistry
1 answer:
solong [7]2 years ago
4 0

The answer is true.

Explanation:

The balance of trade is nothing but the country's exports minus the country's imports.

Exports means, what you produce in the country and sell it to other countries, whereas imports means what you get or buy from the other countries.

When you export more than you import, you have trade surplus .In that case the income from exports are more than the money spent. So you have a trade surplus.

When you import then you have a trade deficit or your income is low. Most of the countries want a trade surplus.

But when the Income from exports and the money spent on imports are the same , the situation is that of balance of trade equilibrium, where the income from exports is equal to the money its residents pay for the imports.

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