Between 1879 and 1914, the world's major nations adhered to the gold standard. Under the gold standard, a country maintained a fixed relationshipbetween its stock of gold and its money supply. Suppose that Germany defined a German mark as 30 grains of gold, and the United States defined $1as 60 grains of gold.Under the gold standard, a German mark would have been worthU.S. dollars.

Gold standard, 1 German mark = 30 grains of gold 1 grain of gold = (1/30) German Mark

Answered: Between 1879 and 1914, the world's…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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