The following question, which has several parts, deals with various aspects of a gold standard monetary system.
a. What are the economic consequences of adopting a gold standard on the magnitude of business cycles?
By adopting a gold standard a country loses the ability to formulate economic policies in such a manner that can suite domestic conditions . Using a gold standard sudden devaluation cannot be allowed , rather changes in interest rate are done to keep the currency value fixed at gold parity . Under a gold standard , the burden of adjustments is always put on the country with a relatively weaker currency . Maintaining the gold standard sometimes prevent government fiscal policies to work very effectively . This dampens the effect of discretionary policies on business cycle adjustments .
The following question, which has several parts, deals with various aspects of a gold standard monetary system. a. What...
The following question, which has several parts, deals with various aspects of a gold standard monetary system. c. Why do some still advocate for a gold standard?
The gold system is a monetary system where a country’s currency is directly linked to gold. A country that uses the gold standard sets a fixed price for gold and that price determines the value of the currency. The gold standard was first put into operation in the UK in 1821. The UK stopped using it in 1931 and the US followed suit in 1933. The gold standard is currently not used by any government. The appeal of the gold...
Question 27 Which statement is TRUE regarding the gold standard? a. Very few countries participated in the gold standard prior to the Great Depression b. The gold standard allowed for flexible exchange rates similar to what we have today c. Countries with large trade surpluses would accumulate more gold stocks. d. Gold was fairly evenly distributed across many countries during the 1930s. 3.33 points Question 28 Which of these is a potential cost of adopting another country's currency as its...
1. Monetary Operations Under a Gold Standard. It is 1900 and most of the world is operating under the gold standard. In Pogo, the central bank starts 1900 with 120 M in gold reserves and 80M in domestic assets consisting of Pogo Treasury Bills and perhaps loans made to member commercial banks (domestic assets). It has 200M in liabilities in the form of deposits made by its member banks as well as Pogo Reserve Notes held by the non-banking public....
Question 2: International Monetary System a. Why did the world not go back to the Gold Standard at the end of World War 2? b. Why did the world not adopt floating exchange rates at the end of World War 2? c. What was the Bretton Woods Exchange Rate System abandoned by the major economies in March 1973?
Which of the following is NOT true? Question 24 options: Under the gold standard, each currency was convertible into gold at a specified rate, and the exchange rate between two currencies was determined by their relative convertibility rates per ounce of gold. Bretton Woods Agreement called for fixed exchange rates between currencies. Under the Smithsonian Agreement, each currency was convertible into gold at a specified rate, and the exchange rate between two currencies was determined by their relative convertibility rates...
Case Study: Auto-Parts Warehouse Management System Jack Greig and Daniel Cox have several years of experience of running an auto-parts business as a supplier in a major city of Australia. The current warehouse management system is not able to handle highly dynamic procedures that can help them move and store inventory at peak efficiency and lowest cost. Jack and Daniel have decided to develop a new Auto-Parts Warehouse Management System where its functionality can be applied throughout all core warehouse...
QUESTION 45 Children and adults suffer from anxiety from various situations and may experience which of the following symptoms? 1 Nausea 。2. All of the above , 3, Stomach aches 4 Headaches 5. Heart attack symptoms 1.00000 pol QUESTION 46 l footbali player being tackled hits his helmet with the ground abruptly. What needs to be for his condition? Check those that apply A bigb 2. Continuous crying 3. Insomnia 4 Stomach aches 5. Cognitive dysfunction 1.00000 points QUESTION 47...
(1 point) (Note: This problem has several parts. The latter parts will not appear until after the earlier parts are completed correctly.) Graph and shade the points (if any) that satisfy the following system of linear inequalities. Then find the coordinates of all of the corner points: 2x - 7y 10x + 3y 2x - 8y 10x + 4y 2 = < -38, -38, 44, 44 Which one of the following statements best describes your solution: A. There are no...
QUESTION 1 A search warrant has several advantages over a subpoena. Which of the following is NOT one of the advantages described in the text? A warrant allows the holder of the warrant, not the target of the defense counsel, to decide which documents are relevant and must be produced. A warrant avoids, but does not eliminate, the possibility of the destruction of evidence. A warrant gives the investigator the ability to interview key witnesses while the search is being...