Expanding,contracting,and managing the money supply is easier for a central bank under the gold standard.

Question

Quizplus · Accepted Answer

Expanding, contracting or managing the money supply was not easier for a central bank under the gold standard because the money supply was primarily determined by the supply and demand for gold, not the actions of the central bank. The amount of money a country could have in circulation was limited by the amount of gold reserves it had.

Expanding,contracting,and Managing the Money Supply Is Easier for a Central