What happens to the balance of payments of country a


Problem

Under the pre-1914 gold standard, Country A has a large gold strike; that is, it becomes able to produce far more gold. What happens to the balance of payments of Country A? Why? How is it returned to equilibrium? What is the effect of this process on the rest of the world? What country can you think of which went through the experience of Country A a few hundred years ago? Did that country prosper from the experience?

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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International Economics: What happens to the balance of payments of country a
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