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.

---

Definitions:

Average Rate of Return

It calculates the return, generated over a period of time, of an investment compared to the initial investment.

Net Present Value Method

A method in capital budgeting that evaluates an investment by calculating the difference between the present value of cash inflows and the present value of cash outflows over a period of time.

Present Value

The estimated current value of a forthcoming sum of money or series of cash inflows, considering a certain rate of return.

Method

A systematic way or approach used to accomplish a task or solve a problem, often applied in research, analysis, or strategic planning.