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5.7 Web Appendix 2: Applying the Asset Market Approach to a Commodity Market: The Case
of Gold
When stock prices become more volatile, the ____ curve for gold shifts right and gold
prices ____, everything else held constant.
A) demand; increase
B) demand; decrease
C) supply; increase
D) supply; decrease
Answer: A
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
A return to the gold standard, that is, using gold for money 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: 5.A2- 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
When gold prices become more volatile, the ____ curve for gold shifts to the ____;
____ the price of gold.
A) supply; right; increasing
B) supply; left; increasing
C) demand; right; decreasing
D) demand; left; decreasing
Answer: D
Diff: 1 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