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Fixed exchange-rate systems maintained by a gold standard have difficulty achieving equilibrium if

Fixed exchange-rate systems maintained by a gold standard have difficulty achieving equilibrium if

A.

the money supply rises with surpluses.

B.

the money supply falls with deficits.

C.

inflation of costs and prices occurs with a balance-of-payments surplus.

D.

changes in the money supply are unrelated to the state of the balance of payments.

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