One potential drawback of the gold standard is that
A) the world economy can be subject to deflationary pressure due to the limited supply of monetary gold.
B) the world economy can be subject to inflationary pressure without changes in the supply of monetary gold.
C) gold is scarce.
D) all of the above
Correct Answer:
Verified
Q2: Suppose that country A and country B
Q3: Gresham's Law states that
A)bad money drives good
Q5: The first full-fledged gold standard
A)was not established
Q6: Suppose that your country officially defines gold
Q6: Prior to the 1870s,both gold and silver
Q9: In the United States,bimetallism was adopted by
Q10: An "international" gold standard can be said
Q12: The international monetary system went through several
Q13: In the 1850s the French franc was
Q17: The United States adopted the gold standard
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