A gold-based commodity money prevents:

Name: A gold-based commodity money prevents:
Brand: Quizplus
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Question

Quizplus · Accepted Answer

A gold-based commodity money system limits the central bank's ability to pursue expansionary monetary policy because the money supply is tied to the amount of gold the country possesses. Expansionary policies often require the central bank to increase the money supply, which is difficult to do in a gold standard system without acquiring more gold.

A Gold-Based Commodity Money Prevents