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Many Countries Abandoned the Gold Standard During the Great Depression

Question 152

Multiple Choice

Many countries abandoned the gold standard during the Great Depression because


A) central banks could not pursue active monetary policy under the gold standard.
B) active fiscal policy could not be pursued under the gold standard.
C) people began to lose faith in gold as a medium of exchange and would no longer accept it as a means of payment.
D) gold supplies could be increased rapidly to expand the money supply.

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