If gold becomes acceptable as a medium of exchange,the demand for gold will ________ and the demand for bonds will ________,everything else held constant.
A)decrease;decrease
B)decrease;increase
C)increase;increase
D)increase;decrease

Question

Quizplus · Accepted Answer

If gold is accepted as a medium of exchange, it becomes more valuable and its demand will increase. This, in turn, will decrease the demand for bonds as investors shift their focus from bonds to gold.

If Gold Becomes Acceptable as a Medium of Exchange,the Demand