Based on the U.S. historical experience with the gold standard, we can conclude that
A) the gold standard guarantees price stability but not economic stability.
B) the standard guarantees economic stability but not price stability.
C) the gold standard guarantees both economic and price stability.
D) the gold standard guarantees neither economic nor price stability.

Question

Quizplus · Accepted Answer

The gold standard, historically, has not guaranteed either economic or price stability. While it might have limited inflation over very long periods, it was associated with economic booms and busts, and short-term price level fluctuations.