Under a gold standard, countries should
A) keep the supply of their domestic money constant.
B) keep the supply of their domestic money fixed in proportion to their gold holdings.
C) keep the supply of foreign exchange less than their domestic money supply.
D) restrict the demand for foreign goods.
E) outlaw speculation.
B
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Will consumption taxes lead to more savings? Why or why not?
What will be an ideal response?
Fracking, a technique for breaking up (or fracturing) rock deep under the earth to release natural gas, has
a. increased the price of natural gas. b. decreased the supply of natural gas. c. contaminated natural gas so it is no longer a "clean" fuel. d. decreased the price of natural gas.
The income-expenditure multiplier arises because one person's additional spending becomes another person's additional income that will generate additional:
A. menu costs. B. cyclical unemployment. C. autonomous expenditure. D. spending.
Let's assume that cloth-making (labor-intensive) and farming (land-intensive) are the only two sectors of production in a country. If this country is labor-abundant, and if trade corresponds to the Heckscher-Ohlin theory, which of the following groups will gain in the short run, but lose in the long run, from the opening of trade?
A. Domestic landowners in the domestic cloth-making sector B. Foreign workers in the foreign cloth-making sector C. Foreign landowners in the foreign farming sector D. Domestic landowners in the domestic farming sector