A commodity money standard exists when exchange rates are:
a. artificially pegged to the price of oil.
b. fixed in terms of gold, thus creating flexible exchange rates between countries.
c. fixed in terms of gold, thus creating fixed exchange rates between countries.
d. allowed to fluctuate based on the values of different currencies.
e. fixed, based on the values of different currencies, in terms of some commodity.
e
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A good or service is said to be scarce when:
a. its price is too low. b. it is offered only to high income earners. c. no one wishes to purchase it. d. it cannot be transported easily. e. at a price of zero, there is not enough to satisfy everyone's desire for it.
The aggregate quantity of goods and services demanded changes as the price level falls because
a. real wealth falls, interest rates rise, and the dollar appreciates. b. real wealth falls, interest rates rise, and the dollar depreciates. c. real wealth rises, interest rates fall, and the dollar appreciates. d. real wealth rises, interest rates fall, and the dollar depreciates.