The Primary Disadvantage of the Gold Standard Was That It

question 11

True/False

The primary disadvantage of the gold standard was that it increased exchange-rate risk.

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Definitions:

Disposable Income

Resources households have at their disposal for saving and expenditure once income taxes have been accounted for.

Marginal Propensity

Typically refers to the marginal propensity to consume (MPC), which is the proportion of an additional income that a consumer spends on goods and services as opposed to saving it.

Disposable Income

The income available for saving and spending after the deduction of income taxes from earnings is known as disposable income.

Consumption

The process by which goods and services are used up or consumed, typically referring to household consumption in economics.