Question
Which of the following is not seen as an advantage of the gold standard?
Answer: Option B
Answer: (b)For a given stock of gold, a rise in real money supply can only occur if the price level declines. The blue fit of Gold standard is that a fixed assets back the money values. It provide a self regulating and stabilizing effect on the economy that discourages the inflation.
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Answer: (b)For a given stock of gold, a rise in real money supply can only occur if the price level declines. The blue fit of Gold standard is that a fixed assets back the money values. It provide a self regulating and stabilizing effect on the economy that discourages the inflation.
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