An isolated island country X practices gold standard in the monetary system. A group of tomb raiders discovers an ancient tomb and takes a large amount of gold from the tomb. A rumor is that the gold is melt and being sold in the market. If the rumor is true, you expect the price of food 

Group of answer choices 

Will not change because the tomb raiders found gold, not food.

Will decrease because people spend more money to buy gold and less money to buy food, leading to the price of food to drop.

Will increase because there is an increase in the supply of gold.

Will decrease because there is an increase in the supply of gold.

Answer rating: 100% (QA)

The answer is option A which is Will decrease because people spend more money ... View the full answer