Holding a Currency to the Gold Standard Works

question 39

Multiple Choice

Holding a currency to the gold standard works:

• A) to the advantage of savers at the expense of borrowers.
• B) to the advantage of borrowers at the expense of savers.
• C) for no one, and hurts both savers and borrowers from access to money.
• D) for everyone, benefiting both savers and borrowers.

---

Definitions:

Marginal Cost

The additional cost incurred to produce one more unit of a good or service.

Marijuana

A psychoactive drug from the Cannabis plant, used for medical or recreational purposes.

Shipment Seized

Refers to the action taken by authorities to take control of goods being transported due to regulatory, legal, or security violations.

Equilibrium Price

The market price at which the quantity of goods supplied is equal to the quantity of goods demanded, leading to a stable market condition.