Applying the Asset Market Approach to a Commodity Market: The Case of Gold
1) 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
2) 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
3) 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