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Interwar Economic Instability
Worksheet
Grade Level
World History
10.77 Interwar Economic Instability
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A debtor country on the gold standard must make foreign payments in gold or strong currency. What policy pressure can this create during a downturn?
A
Pressure to expand credit without regard for reserves.
B
Pressure to cut spending, restrict credit, and lower imports to preserve reserves.
C
Pressure to ban exports so foreign currency stops entering.
D
Pressure to raise wages and prices through unlimited money printing.
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