Canada abandoned the ________ because the government wanted to rapidly expand the money supply in response to the Great Depression.

Question

Quizplus · Accepted Answer

Canada abandoned the gold standard because the government wanted to expand the money supply, which was constrained by the gold reserves. The gold standard tied the value of a currency to a fixed amount of gold, thereby limiting the flexibility of the monetary policy. By abandoning the gold standard, Canada could print more money and devalue its currency to boost exports and stimulate economic growth.

Canada Abandoned the ________ Because the Government Wanted to Rapidly