Problem
1. In the gold-standard era, there existed the so called rules of the game. What were these rules? Were they followed in practice?
2. Keynesian theory suggests that under a system of fixed exchange rates, the influence of income changes in surplus and deficit nations helps promote balance-of-payments equilibrium. Explain.
3. When analyzing the income-adjustment mechanism, one must account for the foreign repercussion effect. Explain.
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.