An important problem with the gold standard was that
A) it was too complicated and restricted business activity.
B) a country did not have control of its domestic monetary policy.
C) exchange rates tended to fluctuate a great deal, making it difficult for businesses to make long-run plans.
D) one country could easily manipulate the system to its advantage and the disadvantage of other countries.
Answer: B
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If a central bank wishes to lower the foreign-exchange value of its currency, it will
A) buy domestic currency and sell foreign assets. B) sell domestic currency and buy foreign assets. C) attempt to raise domestic interest rates. D) attempt to lower the domestic price level relative to foreign price levels.
Why are music, television, and movie companies concerned about their products being posted to Internet Web sites such as YouTube?
What will be an ideal response?
The cross-price elasticity of demand between good X and good Y is -3. Given this information, which of the following statements is true?
A. The demand for goods X and Y is elastic. B. Goods X and Y are complements. C. Goods X and Y are substitutes. D. The demand for goods X and Y is income elastic.
Explain the potential downfalls of the Fed implementing an expansionary monetary policy or contractionary monetary policy at the wrong time
What will be an ideal response?