An important problem with the gold standard was that
A) it was too complicated and restricted business activity.
B) a country did not have control of its domestic monetary policy.
C) exchange rates tended to fluctuate a great deal, making it difficult for businesses to make long-run plans.
D) one country could easily manipulate the system to its advantage and the disadvantage of other countries.
B
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The desired reserve ratio is 10 percent. Joe deposits $1,000 in Bank A. Bank A keeps its minimum desired reserves and lends the excess to Fred
Fred spends his loan at J.C. Penney. J.C. Penney deposits the check it receives from Fred in Bank B. Bank B keeps its minimum desired reserves and lends the excess to Mary. How much can Bank B lend to Mary? A) $90 B) $900 C) $810 D) $1,000 E) $100
The short-run Phillips curve illustrates ________ relationship between the unemployment rate and the inflation rate
A) a mixed B) an upside-down U-shaped C) a positive D) no E) a negative