A key objective of the gold standard was to
A) create a flexible exchange rate system between countries.
B) create a fixed exchange rate system between countries.
C) allow nations to maintain their gold reserves.
D) allow nations to tax its citizens in gold.
Answer: B
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Expansionary fiscal policy will
A) shift the aggregate demand curve to the left. B) shift the aggregate demand curve to the right. C) shift the short-run aggregate supply curve to the left. D) not shift the aggregate demand curve.
What is the difference between a bank run and a bank panic? How might a bank run and asymmetric information lead to a bank panic?
What will be an ideal response?
Suppose the government decides to decrease the amount of investment spending that firms are allowed to depreciate for tax purposes from 50% to 25%, effective next year
What effect should this change have on the desired capital stock and the level of investment spending next year? Use a graph to explain your answer.
Short-run total cost is the sum of
a. short-run fixed cost, short-run variable cost, and short-run marginal costs. b. short-run fixed cost and short-run marginal costs. c. short-run variable cost and short-run costs. d. short-run fixed cost and short-run variable cost.