If Gold and Silver Became the Primary Types of Commodity

question 17

Multiple Choice

If gold and silver became the primary types of commodity money in circulation, what would most likely be expected if there was a sudden and great amount of hoarding of these two items?

• A)People would start to print and use various forms of currency.
• B)Bartering would simply replace gold and silver.
• C)There would likely not be enough money, and the economy could slide into an economic recession.
• D)There would be too much money of other types, and the economy could endure rapid inflation.

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Definitions:

Solver

A tool or algorithm used to find solutions to mathematical problems or optimize certain processes.

Optimal Solutions

Solutions that are the best possible under a given set of constraints or conditions.

Linear Optimization Models

These are mathematical models used to find the best outcome, such as maximum profit or lowest cost, under given constraints by using linear equations.

Balance Constraints

Restrictions in optimization problems that ensure the total input equals the total output, maintaining equilibrium.