A country's currency is backed by a gold standard. However, gold production has declined and will not recover. Which action would protect the value of the country's currency in the long run?

1.) Borrow more gold
2.) Print more currency
3.) Move to fiat currency
4.) Take no action

When the production of gold has minimized and there is no chance for being it to be recovered, then the country should move its focus on creating fiat money. A fiat money is the one of a kind which does not requires any physical property for deciding its worth.

Therefore, the third option is correct.

Learn more about the fiat money in the related link:

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A country's currency is backed by a gold standard. However, gold production has declined and will not recover. Which action would protect the value of the country's currency in the long run? 1.) Borrow more gold 2.) Print more currency 3.) Move to fiat currency 4.) Take no action

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What is gold standard?

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A country's currency is backed by a gold standard. However, gold production has declined and will not recover. Which action would protect the value of the country's currency in the long run?

1.) Borrow more gold
2.) Print more currency
3.) Move to fiat currency
4.) Take no action