The Gold Standard

question 100

Multiple Choice

The gold standard

• A)has been in operation since the establishment of the Federal Reserve Board
• B)has been in operation since shortly after World War I
• C)has been in operation since the Bretton Woods agreement was signed
• D)was in operation for about 50 years before World War I
• E)was in operation from the date of the Bretton Woods agreement until the devaluation of the U.S.dollar in 1971

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Definitions:

Real Values

Economic measures that are adjusted for inflation, reflecting the actual buying power of money or assets.

Classical Dichotomy

The theoretical separation of nominal and real variables in classical economics, suggesting that changes in the money supply only affect nominal variables, not real ones.

Real Variables

Economic variables measured in terms of physical quantities or adjusted for changes in prices over time, excluding inflation or deflation effects.

Nominal Variables

Variables measured in monetary terms without adjusting for changes in price levels or inflation.