The "Rules of the Game" Under the Gold Standard Can

question 19

Multiple Choice

The "rules of the game" under the gold standard can best be described as which of the following:

• A) selling domestic assets in a deficit and buying assets in a surplus.
• B) slowing down the automatic adjustments processes inherent in the gold standard.
• C) selling domestic assets in order to accumulate gold.
• D) selling foreign assets in a deficit and buying foreign assets in a surplus.
• E) selling domestic assets in a surplus.

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Definitions:

Regulatory Capture

A form of government failure that occurs when a regulatory agency tasked with acting in the public's interest instead acts in favor of the commercial or special interests of the industry or sector it is charged with regulating.

Global Competitiveness

The ability of a country or company to compete effectively and successfully in international markets.

Consumer Safety

Measures and regulations aimed at preventing harm to consumers and ensuring that the products they use are free from dangerous defects.

Rent Seeking

An economic concept referring to the practice of individuals or firms using their resources to gain government favors or advantages without creating new wealth, often through lobbying or other non-productive means.