Briefly discuss the main advantage of the bimetallic standard over the gold standard
What will be an ideal response?
The advantage of bimetallism was that it might reduce the price level instability resulting from the use of gold alone. Were gold to become scarce and expensive, cheaper and relatively abundant silver would become the predominant form of money, thereby mitigating the deflation that a pure gold standard would imply.
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Most macroeconomic policy consists of:
A) monetary policy B) fiscal policy C) exchange-rate policy D) regulatory policy
For most industries, average costs decrease indefinitely as output expands
a. True b. False Indicate whether the statement is true or false
If the marginal propensity to consume in an economy is 0.5, then a $1,000 increase in government spending will increase aggregate demand by $4,000
a. True b. False Indicate whether the statement is true or false
Refer to the graph. If the interest rate rises from 2 percent to 3 percent, the supply of money must have:
A. Decreased by $50 billion
B. Decreased by $100 billion
C. Decreased by $150 billion
D. Increased by $50 billion