Under the Gold Standard

question 7

Multiple Choice

Under the Gold Standard,

• A)exchange rates could float.
• B)real interest rates were fixed.
• C)real exchange rates were fixed.
• D)nominal interest rates were fixed.
• E) none of the above

---

Definitions:

Materials

The physical substances from which objects are made, available in different forms and used for various purposes in production.

Fixed Costs

Costs that remain constant regardless of the amount of goods produced or sold, including examples like rent, wages, and insurance premiums.

Labor

Work, especially physical, manual, or non-executive work, done in exchange for payment; also refers to the workforce or workers in general.

Materials

The substances or components used in the production of goods or in the execution of services.