With a pure gold standard
A) a nation may not pursue an independent monetary policy.
B) an inflow of gold will reduce the money supply of a country.
C) there will be a tendency for a too rapid increase in the volume of world trade.
D) a balance of payments deficit will lead to an increase in the domestic price level.
A
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What will be an ideal response?
Explain what the phrase "price rationing" means
What will be an ideal response?
Which of the following is NOT characteristic of a monopolistically competitive industry?
a. monopoly profits b. many firms in the industry c. differentiated products d. Individual firms can influence the market price.
According to the Monetarist view, the impact of expansionary monetary policy will be:
A. the same in the long run as in the short run. B. the same regardless of whether the effects of the policy are anticipated or unanticipated. C. a higher price level (inflation). D. a decrease in short-run prices and an increase in long-run prices.