If more dollars are needed to buy an ounce of gold than before, the im

QUESTION

If more dollars are needed to buy an ounce of gold than before, the implication is that the dollar is worth more.

Indicate whether the statement is true or false.

ANSWER

FALSE
The United States returned to the gold standard in 1934, raising the dollar price of gold from $20.67 per ounce to $35 per ounce. Because more dollars were needed to buy an ounce of gold than before, the implication was that the dollar was worth less. This effectively amounted to a devaluation of the dollar relative to other currencies.