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Major disadvantage of being on gold standard

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The U.S. was on a "gold standard" from 1879 to 1933. Which of the following was a a major disadvantage of being on the gold standard from an economic point of view?

(a) the fixed exchange rate made international trade and investment easier.

(b) the price of gold varied according to how much gold the government bought.

(c) countries on the gold standard could not do expansionary monetary policy

(d) it causes the currencies on the gold standard to appreciate and makes their trade deficits larger.

Reference no: EM131037689

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