Adhering to a Strict Gold Standard Necessarily Means That

question 89

Multiple Choice

Adhering to a strict gold standard necessarily means that

• A)each nation can vary its money supply in response to domestic economic conditions.
• B)no country will experience inflation.
• C)no country will have control over its monetary policy.
• D)no country will experience deflation.

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Substitutes

Products or services that can be used in place of each other, where an increase in the price of one leads to an increase in the demand for the other.

Optimal Consumption

The mix of consumer purchases that maximizes the utility or satisfaction obtained from a given expenditure level.

Indifference Curve

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