Like other mined minerals, gold is a finite resource. Most of the largest gold mines in the world will be stripped within less than a century. So, the United States should not return to the gold standard.
Adding which statement will help the listeners follow the passage better?
(1 point)
Responses
Returning to the gold standard would limit the amount of money in circulation to the amount of gold available, and if gold ran out, that could cause problems.
Returning to the gold standard would limit the amount of money in circulation to the amount of gold available, and if gold ran out, that could cause problems.
More gold would have to be obtained to produce more currency under a gold standard, so gold’s market price would rise, and more gold would be mined.
More gold would have to be obtained to produce more currency under a gold standard, so gold’s market price would rise, and more gold would be mined.
It's important for the Federal Reserve to be able to control the amount of currency available in order to better secure the country against a recession.
It's important for the Federal Reserve to be able to control the amount of currency available in order to better secure the country against a recession.
The United States was on the gold standard until 1971, and since then unemployment rates have risen and average incomes have remained stagnant.
1 answer
The statement that will help the listeners follow the passage better is:
"Returning to the gold standard would limit the amount of money in circulation to the amount of gold available, and if gold ran out, that could cause problems."
This statement directly relates to the finite nature of gold mentioned in the passage and provides a clear explanation of how returning to the gold standard could lead to economic issues as gold resources diminish.
