If two countries adhere to a gold standard, the exchange rate for their currencies is fixed
Indicate whether the statement is true or false
TRUE
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What is the money multiplier and what affects its size?
What will be an ideal response?
According to the theory of purchasing power parity, if the inflation rate in the United States is greater than the inflation rate in Canada, explain what should happen to the exchange rate between the U.S. dollar and the Canadian dollar
What will be an ideal response?
The growth of total railroad mileage
(a) was far greater after the Civil War than before. (b) was maximized in miles built per decade before 1860. (c) was a free-market phenomenon, not subject to government subsidies. (d) was not subject to business cycle fluctuations.
The goal of a cartel is to
A) increase competition among members. B) maximize industry profits. C) increase industry production. D) all of the above.