Which of the following was NOT considered to have been a drawback of the pre-1914 gold standard?
A)It sometimes led to inflation, which several times in the late nineteenth century caused recessions in the United States.
B)Countries had little control over their domestic monetary policies.
C)Countries with trade deficits experienced deflation.
D)Changes in the world money supply were strongly influenced by gold discoveries.

Question

Quizplus · Accepted Answer

The pre-1914 gold standard was criticized for limiting countries' control over their domestic monetary policies (B) and causing deflation in countries with trade deficits (C). Changes in the world money supply due to gold discoveries (D) were indeed a feature of the gold standard, but not considered a drawback in the context of this question. Inflation leading to recessions, as mentioned in option A, was not typically associated as a drawback of the gold standard; rather, the system was more often criticized for its deflationary pressures.

Which of the Following Was NOT Considered to Have Been