If the Price of Gold Becomes Less Volatile, Then, Other

question 38

Multiple Choice

If the price of gold becomes less volatile, then, other things equal, the demand for stocks will ________ and the demand for gold will ________.

• A) increase; increase
• B) increase; decrease
• C) decrease; decrease
• D) decrease; increase

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Definitions:

Demand Rate

refers to the speed at which customers purchase or demand a product or service over a given period of time.

Production Order Quantity Model

An inventory management technique that determines the optimal quantity of products to order or produce, minimizing total inventory costs.

Noninstantaneous Receipt

An inventory replenishment model where items are received gradually over time, instead of all at once, affecting the timing of orders and inventory levels.

Demand Rate

The speed at which products or services are requested or consumed by the market or customers, influencing inventory levels and production planning.