Suppose That Country a and Country B Are Both on a Bimetallic

question 77

Multiple Choice

Suppose that country A and country B are both on a bimetallic standard.In country A the ratio is 15 to one (i.e.,an ounce of gold is worth 15 times as much as an ounce of silver in that currency) ,while in country B the ratio is ten to one.If the free flow of capital is allowed between countries A and B,is this a sustainable framework?

• A)Yes
• B)No
• C)There is not enough information to make an informed determination.

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Definitions:

Variance

Measures the spread between numbers in a dataset, indicating how much the data points differ from the mean.

Significantly More

A statistical term indicating that an observed effect or difference is large enough that it is unlikely to have occurred by chance, based on a set significance level.

Independent Sample Variances

Variability measures of two or more independent samples, analyzed to understand difference across populations.

F Distribution

A probability distribution that arises in the analysis of variance tests, used to calculate and interpret the ratio of variances to determine statistical significance.