Under the Gold Standard,if Gold Was Flowing from the U

question 66

Multiple Choice

Under the gold standard,if gold was flowing from the U.S.to Great Britain,the U.S.would experience all of the following EXCEPT

• A)higher interest rates.
• B)decreasing aggregate demand.
• C)higher prices.
• D)falling income.

---

Definitions:

Index Model

A financial model that describes the return of a security or portfolio as a function of the return of the market index, plus a residual effect unique to the security.

CAPM

CAPM, or the Capital Asset Pricing Model, is a formula that describes the relationship between the expected return of an investment and market risk.

Expected Inflation

The anticipated rate at which the general level of prices for goods and services will rise over a period of time.

Systematic Risk

The risk inherent to the entire market or market segment, often referred to as market risk.