Suppose that the United States is on a bimetallic standard at $30 to one ounce of gold and $2 for one ounce of silver. If new silver mines open and flood the market with silver,
a. Only the silver currency wili circulate.
b. Only the gold currency will circulate.
c. No change will take place since citizens could exchange their gold currency for silver currency at any time.
d. None of the options.
a. Only the silver currency wili circulate.
b. Only the gold currency will circulate.
c. No change will take place since citizens could exchange their gold currency for silver currency at any time.
d. None of the options.