When all currencies are tied directly to gold, then
A) currency exchange rates throughout the world are flexible.
B) currency exchange rates throughout the world are fixed.
C) the world's stock of gold cannot change.
D) the price of each nation's currency in terms of gold is flexible.
Answer: B
You might also like to view...
Suppose an economy has some inflation. Then, after a base year, the value of real GDP will
A) be less than nominal GDP. B) not be different from nominal GDP. C) be greater than nominal GDP. D) will be approximately half the value of nominal GDP.
Prashanth decides to buy a $75 ticket to a particular New York professional hockey game
A. is relatively unappreciative of the arts. B. obtains more marginal utility from the play than from the hockey game. C. has a higher "marginal utility-to-price ratio" for the hockey game than for the play. D. has recently attended several other Broadway plays.