Which of the Following Is True of the Gold Standard

question 59

Multiple Choice

Which of the following is true of the gold standard as the international monetary system?

• A)The gold standard allowed countries to observe lax monetary policies.
• B)The volume of paper currency could not exceed the gold reserves.
• C)The countries could just print money to combat economic downturns.
• D)The gold standard provided for the devaluation of the currency to prevent the large-scale economic downturn.
• E)The gold standard tied the currencies of all the countries to the U.S.dollar.

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Definitions:

Direct Manufacturing Cost

The sum of all direct costs associated with the production of goods, including labor and materials.

Relevant Range

The span of operations where the presuppositions regarding variable and fixed cost dynamics remain applicable.

Sunk Cost

Costs that have already been incurred and cannot be recovered, which should not affect future business decisions.

Marginal Cost

The cost incurred by producing one additional unit of a product or service.