Author Question: What is/are the advantage(s) of the gold standard? (a) The government can print money as required ... (Read 55 times)

lindiwe · **on:** Jun 30, 2018

What is/are the advantage(s) of the gold standard?

(a) The government can print money as required by cyclical fluctuations in domestic markets.
(b) Floating exchange rates.
(c) It requires monetary discipline.
(d) All of the above.

Question 2

If interest rates fall without any corresponding change in income, then it is possible according to the IS-LM model that

a. money demand fell and government spending declined.
b. the money supply increased and taxes declined.
c. tight monetary policy and easy fiscal policy.
d. easy monetary policy and easy fiscal policy.