Those who advocate a return to a real gold standard believe that doing so would:
A)allow countries to pursue independent monetary policies.
B)strengthen the power of fiscal policy in influencing aggregate demand and output.
C)reduce unemployment rates by allowing the countries to adjust their money supply to the money demand.
D)reduce national and average global rates of inflation by controlling countries' abilities to expand their money supplies.

Question

Quizplus · Accepted Answer

Advocates of a return to the gold standard believe that it would limit the ability of governments to expand their money supplies and therefore reduce inflation rates. This would be accomplished by tying the money supply to the amount of gold in the country's reserves.

Those Who Advocate a Return to a Real Gold Standard