Under the gold standard, how were money markets affected by gold discoveries in the Yukon and South America?

Question

Quizplus · Accepted Answer

Under the gold standard, money was tied to gold reserves, meaning that the domestic money supply would increase with an increase in gold discoveries. When new gold was found in the Yukon and South America, it would be added to the world's gold reserves, resulting in an overall increase in the money supply. This increase in the money supply would have led to an increase in economic activity and inflation.

Under the Gold Standard, How Were Money Markets Affected by Gold