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:

Mexico

A country in North America, known for its rich cultural heritage, diverse landscapes, and history that encompasses ancient civilizations, colonial periods, and modern development.

Nativism

The political policy of promoting the interests of native inhabitants against those of immigrants, including by supporting immigration-restriction measures.

Liberty Party

Abolitionist political party that nominated James G. Birney for president in 1840 and 1844; merged with the Free Soil Party in 1848.

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