Under the gold standard, to increase the money supply in the country, the government must
A) increase the value of the country's currency on foreign exchange markets.
B) simply print more currency.
C) have enough gold to back up the increase in the money supply.
D) buy foreign currencies with dollars to increase foreign currency reserves.
C
You might also like to view...
When asset prices rise above their fundamental economic values, a(n) ________ occurs
A) asset-price bubble B) liability war C) decline in lending D) decrease in moral hazard
The marginal-cost curve intersects the average-total-cost curve at the output level where average fixed costs are zero
a. True b. False Indicate whether the statement is true or false
The law of demand states that the quantity demanded of a good is inversely related to the price of that good. Therefore, as the price of a good goes:
A. down, the quantity demanded stays the same. B. up, the quantity demanded goes down. C. up, the quantity demanded also goes up. D. down, the quantity demanded goes down.
Which of the following is inconsistent with monopoly?
a. a single seller b. economies of scale c. free entry and exit d. selling in the elastic portion of the demand curve in order to maximize profits