One explanation for the status quo bias is an aversion to loss

The move to an international gold standard between 1896 and World War I:

a. encouraged the free flow of goods and capital between countries. b. was accompanied by moderate increases in prices. c. required a higher use of resources than would have been the case under a paper standard. d. made it difficult to exercise expansionary monetary policy. e. All of the above.

When the world price of the traded good is lower than the domestic no-trade equilibrium price, free trade causes domestic production to fall and domestic consumption to rise

a. True b. False Indicate whether the statement is true or false