With a Pure Gold Standard

question 157

Multiple Choice

With a pure gold standard

• A)a nation may not pursue an independent monetary policy.
• B)an inflow of gold will reduce the money supply of a country.
• C)there will be a tendency for a too rapid increase in the volume of world trade.
• D)a balance of payments deficit will lead to an increase in the domestic price level.

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Definitions:

Labor Supply

The total hours that workers are willing and able to work at a given wage rate, across different jobs and industries.

Substitution Effect

The change in quantity demanded of a good due to a change in its price, leading consumers to switch to or from substitute products.

Higher Wage

A wage rate that is above the average or minimum level commonly paid for similar work.

Wage Discrimination

Unequal pay for workers who perform similar jobs or duties, often based on gender, race, age, or sexual orientation.