Which of the following is not a characteristic of a gold standard?
A. Currency convertibility into gold
B. Discretionary or activist monetary policy
C. Unlimited international gold flows
D. Exchange rate stability
Answer: B
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Along a straight-line downward-sloping demand curve, elasticity is
a. constant, but its value cannot be determined without measurement b. constant and equal to an absolute value of one c. greater at higher prices d. greater at lower prices e. greater in the middle
Which of the following is not a weakness of fiscal policy? a. Implementation of policy is difficult
b. Time lags in fiscal policy are long and variable. c. Fiscal policy works only during periods of stagflation. d. Fiscal policy often affects only current income, but many economic decisions are made on the basis of permanent income. e. Fiscal policy might have undesirable long-term effects on short-run aggregate supply.
The table below shows cost data for a firm that is selling in a purely competitive market.OutputAFCAVCATCMC1$300$100$400$1002150752255031007017060475731488056080140110650901401407431031461808381191562309331381712901030160190360Refer to the above table. If the market price for the firm's product is $50, the competitive firm will:
A. produce one unit. B. produce two units. C. produce three units. D. shut down.
Regulators require a bank to hold some of its assets as reserves mainly to address:
A. liquidity risk. B. operational risk. C. trading risk. D. credit risk.