A commodity money standard exists when exchange rates are:
a. artificially pegged to the price of oil.
b. fixed in terms of gold, thus creating flexible exchange rates between countries.
c. fixed in terms of gold, thus creating fixed exchange rates between countries.
d. allowed to fluctuate based on the values of different currencies.
e. fixed, based on the values of different currencies, in terms of some commodity.
e
You might also like to view...
Two economists from Northwestern University estimated the benefit households received from subscribing to broadband Internet service. The economists found that
A) the average consumer of broadband Internet service received a marginal benefit equal to $36. B) one month's benefit to consumers who subscribe to broadband Internet service is about $890 million. C) most consumers of broadband Internet service were not willing to pay more than $36 per month. D) the consumer surplus from dial-up Internet service exceeded the consumer surplus from broadband Internet service.
A spending shock typically involves a dramatic reduction in spending in virtually all sectors of the economy simultaneously
a. True b. False
It is possible for the economy to be producing at a point that lies beyond its institutional production possibilities frontier (PPF), but not its physical PPF
Indicate whether the statement is true or false
Starting from long-run equilibrium, a large decrease in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; lower; potential B. expansionary; higher; potential C. recessionary; lower; potential D. recessionary; lower; lower