If Currencies Around the World Are Based on the Gold

question 61

Multiple Choice

If currencies around the world are based on the gold standard,and the EU lowers the amount of gold for which the euro will trade,then holding all else constant,

• A)the euro will depreciate against the dollar.
• B)the euro will appreciate against the dollar.
• C)the value of the euro relative to the dollar will stay constant.
• D)U.S.exports to EU countries will increase.

---

Definitions:

Soft Drinks

Beverages that are non-alcoholic and typically carbonated, often containing sugar, flavorings, and acids.

Marginal Utility

The additional satisfaction or utility gained from consuming an additional unit of a good or service.

Utility Per Dollar

Represents the amount of satisfaction or pleasure received per unit of expenditure.

Good

A tangible or intangible product that can satisfy a need or desire, and is transferable from one person to another.