One disadvantage of the pre-1914 gold standard was that:
A) slow expansion of the world's gold stock led to too much inflation in the prices of products other than gold.
B) internal prices of economies being rigid, there arose uncertainty in the international trade.
C) pressures to adjust were placed mainly on countries in payments deficit situations, and not on countries in surplus.
D) central banks often changed their announced gold prices to achieve competitive devaluations.
Correct Answer:
Verified
Q33: Suppose under a gold standard the price
Q34: Which of the following is NOT one
Q35: Faced with increasing outflows of gold in
Q36: If a country with a fixed exchange
Q37: Today, no country fixes its currency to
Q39: Which one of the following is NOT
Q40: The central feature of the Bretton Woods
Q41: With respect to exchange rates, the 1997
Q42: Government can change domestic interest rates to
Q43: The exchange-rate mechanism (ERM) crisis occurred because
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents