PLEASE HELP ASAP Monetary Policy under a Gold Standard: Question 11 options: a.

Question

PLEASE HELP ASAP

Monetary Policy under a Gold Standard:

Question 11 options:

a. tends to be expansionary since everyone wants gold in his bank account when it is legal.

b. tends to be highly inflationary since the government is now able to print as much paper money as it pleases.

c. is designed to prevent recessions by stimulating business activity when the economy falls into recession.

d, tends to be passive since the government cannot either increase or decrease the money supply in response to the business cycle.

The main benefit provided by a Gold Standard

Question 12 options:

is the ability it gives the government to change the money supply in order to "manage" the business cycle.

is that there is a limit placed on a government's ability to print money at will, thereby preventing inflation or hyperinflation.

is that if frees up a government's ability to conduct expansionary monetary policy when the economy is in recession.

is that it prevents a government from accumulating a national debt.

a. tends to be expansionary since everyone wants gold in his bank account when it is legal.

b. tends to be highly inflationary since the government is now able to print as much paper money as it pleases.

c. is designed to prevent recessions by stimulating business activity when the economy falls into recession.

d, tends to be passive since the government cannot either increase or decrease the money supply in response to the business cycle.

The main benefit provided by a Gold Standard

Question 12 options:

is the ability it gives the government to change the money supply in order to "manage" the business cycle.

is that there is a limit placed on a government's ability to print money at will, thereby preventing inflation or hyperinflation.

is that if frees up a government's ability to conduct expansionary monetary policy when the economy is in recession.

is that it prevents a government from accumulating a national debt.

Explanation / Answer

Answer : Option D is correct. Monetary policy under a gold standard tend to be passive since the government cannot either increase or decrease the money supply in response to the business cycle.It means that gold has fixed the standard and lower the deflation as well as Economic growth in the country.

Answer : Option B is correct.The main benefit of the gold standard is that there is a limit placed on the government's ability to print money at their will, this resulted in decline inflation or hyperinflation. Gold standard fixed the rate of currency at present.

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.