Question

Under the gold standard, what occurs when Japan has a trade surplus? Multiple Choice The prices of commodities will be low in the United States. The United States will experience negative price inflation. No other countries will trade gold with Japan. There will be a net flow of gold from the United States to Japan.

Answer 1

Answer:

There will be a net flow of gold from the United States to Japan

Explanation:

A trade surplus represents a net inflow of domestic currency from foreign markets. It is the opposite of a trade deficit, which represents a net outflow, and occurs when the result of the above calculation is negative.