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
D
You might also like to view...
If the natural rate of unemployment equals 4 percent and the actual rate of unemployment equals 6 percent, then cyclical unemployment equals:
A. -2 percent. B. 2 percent. C. 10 percent. D. -1 percent.
If an insurance company hires a resource in a perfectly competitive resource market and it wants to maximize profit, it will hire where marginal revenue product equals
a. the price of the resource, which equals its marginal resource cost b. the price of the resource, which is greater than its marginal resource cost c. the price of the resource, which is less than its marginal resource cost d. marginal product e. the price of the product
For a monopsonist, the marginal factor cost curve will be above the supply of labor curve. The marginal factor cost curve is above the supply curve because
A. the monopsonist will have to pay all workers a higher wage rate than the current wage rate if it wants to hire more workers. B. in order for the monopsonist to hire more labor the monopsonist must also purchase more capital. C. in order for the monopsonist to sell an additional unit of the good, the price of the good must be lowered. D. the monopsonist will take advantage of labor and offer them lower wages.
Under a pure gold standard
A. all currencies are defined in terms of gold and these rates are fixed. B. the dollar is tied to gold and all other currencies are fixed relative to the dollar. C. all foreign exchanges involve gold for goods and services. D. all trade involves government agencies.