If Gold and the Dollar Are Substitutes, a Cut in the Japanese

question 126

Multiple Choice

If gold and the dollar are substitutes, a cut in the Japanese discount rate can be expected to

• A)appreciate the dollar and decrease the price of gold.
• B)depreciate the dollar and increase the price of gold.
• C)depreciate the dollar and decrease the price of gold.
• D)appreciate the dollar and increase the price of gold.

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Definitions:

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