Author Question: Briefly discuss the main advantage of the bimetallic standard over the gold standard. What will ... (Read 161 times)

segrsyd · **on:** Jun 30, 2018

Briefly discuss the main advantage of the bimetallic standard over the gold standard.

What will be an ideal response?

Question 2

The current account balance is

A) the supply of a country's exports less the country's own demand for imports.
B) the demand for a country's exports plus the country's own demand for imports.
C) the country's own demand for imports less the demand for a country's exports.
D) the demand for a country's exports less the country's own demand for imports.
E) the country's federal reserves minus the national debt.

kishoreddi · **Reply #1 on:** Jun 30, 2018

Answer to Question 1

The advantage of bimetallism was that it might reduce the price level instability resulting from the use of gold alone. Were gold to become scarce and expensive, cheaper and relatively abundant silver would become the predominant form of money, thereby mitigating the deflation that a pure gold standard would imply.

Answer to Question 2

D