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© 2014 Pearson Canada Inc.#
If the price of gold becomes less volatile, then, other things equal, the demand for stocks will
____ and the demand for gold will ____.
A) increase; increase
B) increase; decrease
C) decrease; decrease
D) decrease; increase
Answer: D
Diff: 1 Type: MC Page Ref: 85
Skill: Applied
Objective List: 5.1 Explain the determinants of asset demand
If brokerage commissions on bond sales decrease, then, other things equal, the demand for
bonds will ____ and the demand for real estate will ____.
A) increase; increase
B) increase; decrease
C) decrease; decrease
D) decrease; increase
Answer: B
Diff: 1 Type: MC Page Ref: 85
Skill: Applied
Objective List: 5.1 Explain the determinants of asset demand
If gold becomes acceptable as a medium of exchange, the demand for gold will ____
and the demand for bonds will ____, everything else held constant.
A) decrease; decrease
B) decrease; increase
C) increase; increase
D) increase; decrease
Answer: D
Diff: 1 Type: MC Page Ref: 85
Skill: Applied
Objective List: 5.1 Explain the determinants of asset demand
The demand for silver decreases, other things equal, when ____.
A) the gold market is expected to boom
B) the market for silver becomes more liquid
C) wealth grows rapidly
D) interest rates are expected to rise
Answer: A
Diff: 1 Type: MC Page Ref: 85
Skill: Applied
Objective List: 5.1 Explain the determinants of asset demand