Under a gold standard exchange rate system, a nation's money supply is regulated by

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Under a gold standard exchange rate system, a nation's money supply is regulated by the quantity of gold owned by a country. The value of the currency is directly tied to the amount of gold held by the central bank, and the money supply cannot be increased without an equivalent increase in the amount of gold. This limits a country's ability to inflate its currency, as it must maintain a corresponding amount of gold reserves.

Under a Gold Standard Exchange Rate System, a Nation's Money