One Potential Drawback of the Gold Standard Is That

question 79

Multiple Choice

One potential drawback of the gold standard is that

• A)the world economy can be subject to deflationary pressure due to the limited supply of monetary gold.
• B)the world economy can be subject to inflationary pressure without changes in the supply of monetary gold.
• C)gold is scarce.
• D)all of the options

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Definitions:

Laceration

A deep cut or tear in the skin or flesh, often caused by accidents with sharp objects, requiring medical attention to prevent infection and ensure proper healing.

Histamine

A biogenic amine involved in local immune responses, regulating physiological function in the gut, and acting as a neurotransmitter for the brain, spinal cord, and uterus.

Prostaglandin

A group of lipid compounds with diverse hormone-like effects, including regulating inflammation, blood flow, and smooth muscle contraction.

Bradykinin

A peptide that causes blood vessels to dilate, leading to lowered blood pressure and increased pain sensitivity.