Under the Gold Standard,the Government Must Have Enough Gold to Back

question 20

Multiple Choice

Under the gold standard,the government must have enough gold to back up any

• A)increase in money demand.
• B)increase in the money supply.
• C)change in its currency's exchange rate.
• D)foreign currency deposits in its central bank.

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Definitions:

Inflation Expectations

The rate at which individuals expect the general price level of goods and services to change over a period of time.

Short-run Phillips Curve

A representation in economics that shows an inverse relationship between the rate of unemployment and the rate of inflation in the short-term.

Unemployment

The condition wherein people who are able and willing to work and are actively looking for work cannot secure a job.

Contractionary Monetary Policy

A monetary policy strategy used by central banks to reduce inflation and cool an overheated economy by raising interest rates or increasing reserve requirements.