Author Question: A commodity money standard exists when exchange rates are: a. artificially pegged to the price of ... (Read 47 times)

CQXA · **on:** Jun 30, 2018

A commodity money standard exists when exchange rates are:
a. artificially pegged to the price of oil.
b. fixed in terms of gold, thus creating flexible exchange rates between countries.
c. fixed in terms of gold, thus creating fixed exchange rates between countries.
d. allowed to fluctuate based on the values of different currencies.
e. fixed, based on the values of different currencies, in terms of some commodity.

Question 2

Which of the following observations is true of subsidies?
a. They act as barriers to trade.
b. They reduce the amounts of actual labor, raw material, and capital costs of production.
c. They are capable of distorting trade patterns.
d. They reduce inefficiencies.