One Feature of the Gold Standard Was That

question 208

Multiple Choice

One feature of the gold standard was that

• A)countries had almost complete control over their own monetary policies
• B)surplus could cause the money supply to decrease
• C)slow gold production could lead to deflation
• D)exchange rates were unstable
• E)each currency was worth the same as other currencies

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Definitions:

Price Takers

Individuals or companies who accept the prevailing prices in the market of their products without having the ability to influence them.

Marginal Productivity Theory

An economic theory suggesting that payment to factors of production equals the value of their marginal contribution to the production process.

Equilibrium Value

The price at which the quantity of goods supplied is equal to the quantity of goods demanded in a market.

Factor Of Production

Inputs employed in the production of goods and services, typically classified as land, labor, capital, and occasionally entrepreneurship.