When the United States was under the gold standard, the trend in prices was that prices:
A) rose steadily over time but with short-run fluctuations.
B) were relatively stable over time but had short-run fluctuations.
C) fell steadily over time but had some short-run fluctuations.
D) showed no discernible pattern in either the long run or the short run.

Question

Quizplus · Accepted Answer

Under the gold standard, prices were relatively stable over the long term because the money supply was tied to gold reserves, limiting inflation. However, short-run fluctuations occurred due to changes in gold supply and economic conditions.

When the United States Was Under the Gold Standard, the Trend