Why Did Canada Abandon the Gold Standard in the 1930s

question 66

Multiple Choice

Why did Canada abandon the gold standard in the 1930s?

• A)The government wanted to rapidly expand the money supply in response to the Great Depression.
• B)The government wanted to move away from a floating exchange rate system to a fixed exchange rate system.
• C)The Treasury Department in the United States found it was cheaper to print paper money instead of gold coins.
• D)New sources of gold were discovered, so the price of gold plummeted, dramatically reducing the value of the dollar.
• E)Other countries stopped accepting Canadian money as payment for their goods and services.

Understand the reasons behind the downward slope of the aggregate demand curve.

Comprehend the relationship between savings, investment, and the interest rate.

Relate inflation, employment, and GDP to economic theories.

Describe the historical context and evolution of economic thought from classical to Keynesian perspectives.

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Definitions:

Reunion

The act of coming together again after a period of separation.

Ambivalent/Resistant Attachment

A type of insecure attachment pattern observed in some children, characterized by distress when separated from caregivers and ambivalence upon their return.

Disorganized-Disoriented Attachment

A pattern of attachment behavior characterized by lack of a clear strategy for dealing with separation stress, indicative of confusion and apprehension regarding caregivers.

Severe Distress

Severe distress is a significantly uncomfortable emotional or psychological condition, often resulting from trauma or a mental health issue, that disrupts normal functioning.