MCQOPTIONS
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| 1. |
Which of the following is not seen as an advantage of the gold standard? |
| A. | For a given stock of gold, a rise in real money supply can only occur if the price level declines. |
| B. | Inflation is unlikely to emerge as a significant problem. |
| C. | No country needs to serve at the centre of this fixed exchange rate system. |
| D. | The monetary mechanism has credibility. |
| Answer» B. Inflation is unlikely to emerge as a significant problem. | |