Under a Gold Standard, the Fed

question 40

Multiple Choice

Under a gold standard, the Fed

• A) allow the price of gold to be freely determined in the gold market.
• B) target the price of gold so that it rose "k-percent" each year.
• C) no direct control over the nation's inflation rate.
• D) require that only the Fed could own gold.
• E) None of the above answers is correct

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Definitions:

Vegetative Cover

Plants and trees that cover the ground, reducing soil erosion and influencing the local climate.

Rainfall Intensity

The rate at which rain falls over a given area, measured in millimeters per hour or inches per hour.

Municipal Water

Water that is treated and supplied by a municipal corporation for public use in cities and towns.

Spring Water

Water that flows naturally to the surface from a subsurface aquifer.