The gold standard is Answer 1. a type of floating exchange rate system. 2. a type of managed flexible exchange rate system. 3. a type of fixed exchange rate system. 4. a purely floating exchange rate system.

The gold standard is Answer 1. a type of floating exchange rate system. 2. a type of managed flexible exchange rate system. 3. a type of fixed exchange rate system. 4. a purely floating exchange rate system.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter29: Exchange Rates And International Capital Flows

Section: Chapter Questions

Problem 9SCQ: Is a country for which imports and exports comprise a large fraction of the GDP more likely to adopt...

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Question

The gold standard is
Answer
1. a type of floating exchange rate system.
2. a type of managed flexible exchange rate system.
3. a type of fixed exchange rate system.
4. a purely floating exchange rate system.

Expert Solution

Step 1

Under gold standard system, each country link value of domestic currency to the fix value of the gold.

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