Suppose Montmarinsi Has a Gold Standard Exchange Rate System

question 102

Multiple Choice

Suppose Montmarinsi has a gold standard exchange rate system. If the price of gold in
Montmarinsi is fixed at 80 monts (the currency of Montmarinsi) per ounce, this means

• A) that the gold market cannot reach an equilibrium because of a price control.
• B) the government of Montmarinsi was committed to exchanging 1 ounce of gold to anyone who was willing to pay 80 monts.
• C) that anyone wishing to buy foreign currency must pay in gold which can be purchased from the government at 80 monts per ounce.
• D) that the government is the sole supplier of gold and sets the price of gold.

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Definitions:

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A machine that supports or takes over breathing for patients who are unable to breathe adequately on their own.

Respirator

A device designed to protect the wearer from inhaling harmful dust, fumes, vapors, or gases.

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Increased Preload

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