The Price of Gold Affects the Equilibrium Yield on Bonds

question 39

Multiple Choice

The price of gold affects the equilibrium yield on bonds due to its impact on

• A) the demand for bonds.
• B) the supply of bonds.
• C) the supply and demand for bonds.
• D) none of the above

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Definitions:

Signal Detection Theory

A psychological theory that describes how individuals decide on the presence or absence of a stimulus under conditions of uncertainty.

Ganglion Cells

Neurons located in the retina of the eye that integrate visual information before it's transmitted to the brain via the optic nerve.

Cones

Sensory receptors in the retina that detect light waves and transduce them into signals that are processed in the brain as vision. Cones respond best to higher levels of illumination, and therefore they are responsible for seeing color and fine detail.

Rods

Sensory receptors in the retina that detect light waves and transduce them into signals that are processed in the brain as vision. Rods respond best to low levels of illumination, and therefore they do not support color vision or seeing fine detail.