When a country using gold as money experiences inflation, the value of gold declines. Since gold is cheaper, people use gold for things that previously they would not have used it for. Hence, gold is withdrawn from circulation. This interaction is an example of:
amplifying feedback. dampening feedback. no feedback. both amplifying and dampening feedback.
Which of the following is an example of dampening feedback?
When people riot more, police respond with greater violence; when police use more violence, people riot more. The more land erodes, the less vegetation it has; the less vegetation land has, the more easily it erodes. The fatter John gets, the more he eats; the more John eats, the fatter he gets. As spending and income rise, the amount of taxes that the government collects rises; increases in taxes cut spending and income.
