Which of the following is true for countries following the


Which of the following is true for countries following the gold standard exchange rate system?

1. The value of the exchange rate is relatively stable.

2. These countries are not prone to deflation or inflation.

3. Discretionary fiscal policy in these countries is hindered.

4. These countries are relatively less susceptible to domestic shocks.

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Microeconomics: Which of the following is true for countries following the
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