Some economic historians have noted that during the period of the gold standard, gold discoveries were most likely to occur after a long deflation. What might explain this observation? After a long period of deflation, the government would charter prospectors to find gold deposits to help alleviate the deflation. O The government knew where all the gold deposits were. When deflation went on for too long, the government would tip off prospectors to help alleviate the deflation. After a long period of deflation, an ounce of gold was worth a lot less in terms of goods and services. This created a greater incentive to look for new gold deposits. O After a long period of deflation, an ounce of gold would buy more goods and services. This created a greater incentive to look for new gold deposits.

Some economic historians have noted that during the period of the gold standard, gold discoveries were most likely to occur after a long deflation. What might explain this observation? After a long period of deflation, the government would charter prospectors to find gold deposits to help alleviate the deflation. O The government knew where all the gold deposits were. When deflation went on for too long, the government would tip off prospectors to help alleviate the deflation. After a long period of deflation, an ounce of gold was worth a lot less in terms of goods and services. This created a greater incentive to look for new gold deposits. O After a long period of deflation, an ounce of gold would buy more goods and services. This created a greater incentive to look for new gold deposits.

MACROECONOMICS

14th Edition

ISBN:9781337794985

Author:Baumol

Publisher:Baumol

Chapter6: How Statisticians Measure Inflation

Section: Chapter Questions

Problem 3TY

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