the economics of money, banking, and financial markets

148 #

© 2014 Pearson Canada Inc.#

4. 
   

   Discovery of new gold in Alaska will ____ the ____ of gold, ____ its price,
   everything else held constant.
   A) increase; demand; increasing
   B) decrease; demand; decreasing
   C) decrease; supply; increasing
   D) increase; supply; decreasing
   Answer: D
   Diff: 2 Type: MC Page Ref: 5A.2- 15
   Topic: Questions for Web Appendix on Gold
   Skill: Applied
   Objective List: Appendix: Applying the Asset Market Approach to a Commodity Market: The
   Case of Gold

   
   


5. 
   

   An increase in the expected inflation rate will ____ the ____ for gold, ____ its
   price, everything else held constant.
   A) increase; demand; increasing
   B) decrease; demand; decreasing
   C) increase; supply; increasing
   D) decrease; supply; increasing
   Answer: A
   Diff: 1 Type: MC Page Ref: 5A.2- 15 - 16
   Topic: Questions for Web Appendix on Gold
   Skill: Applied
   Objective List: Appendix: Applying the Asset Market Approach to a Commodity Market: The
   Case of Gold

   
   


6. 
   

   The price of gold should be ____ to the expected inflation rate.
   A) positively related
   B) negatively related
   C) inversely related
   D) unrelated
   Answer: A
   Diff: 1 Type: MC Page Ref: 5A.2- 16
   Topic: Questions for Web Appendix on Gold
   Skill: Applied
   Objective List: Appendix: Applying the Asset Market Approach to a Commodity Market: The
   Case of Gold