What would allow an increase in the money supply of a country that is on the gold standard?
A) The government prints more paper money.
B) The government lowers the required reserve ratio.
C) New gold supplies are discovered that can be mined.
D) Additional goods and services are produced.

Question

Quizplus · Accepted Answer

Under the gold standard, the money supply can increase if the country acquires more gold, such as through the discovery of new gold supplies that can be mined. This is because the amount of money in circulation is directly tied to the amount of gold the country holds.

What Would Allow an Increase in the Money Supply of a Country