Recall the Application about the possible link between interest rates and commodity prices worldwide to answer the following question(s).Recall the Application. What is the conclusion regarding the link between monetary policy and commodity prices?

A. We should be cautious in linking monetary policy and commodity prices because there is no simple relationship between the two.
B. It is certain that there is a negative relationship between monetary policy and commodity prices. Expansionary policy lowers commodity prices.
C. It is certain that there is a positive relationship between monetary policy and commodity prices. Expansionary policy raises commodity prices.
D. It is certain that there is no relationship between monetary policy and commodity prices. Expansionary policy does not change commodity prices.


Answer: A

Economics

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