During the late nineteenth century, the gold standard was a subject of controversy. Why?
A) Businesses resented fixed exchange rates because of their inability to raise or lower prices.
B) Gold flows were erratic and resulted in a series of large economic swings-booms and busts.
C) Prices were stable and predictable, but profits fell.
D) Governments cheated on printing money, causing inflation problems all over the world.

Question

Quizplus · Accepted Answer

The gold standard led to problems of inflation and deflation, as gold flows were erratic and caused economic swings. This instability contributed to the controversy surrounding the gold standard in the late 19th century.

During the Late Nineteenth Century, the Gold Standard Was a Subject