Please briefly describe what is meant by a gold exchange standard
What will be an ideal response?
Under a gold exchange standard, central banks' reserves consist of gold and currencies whose price in terms of gold are fixed, and each central bank fixes its exchange rate to a currency with a fixed gold price. The post-WWII currency system was supposed to be a gold exchange standard with the U.S. responsible for fixing the price of gold at $35 per ounce.
Economics
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Suppose the desired reserve ratio is 20 percent and there is no currency drain. Then a $1 increase in the monetary base leads to the banking system to increase the quantity of money by
A) $0.02. B) $4. C) $5. D) $20. E) $2.
Economics
Why do firms ignore external costs when they pollute?
What will be an ideal response?
Economics