The price of gold should be ________ to the expected inflation rate.
A)positively related
B)negatively related
C)inversely related
D)unrelated

Question

Quizplus · Accepted Answer

Gold is often seen as a hedge against inflation, meaning as inflation rises, the demand for gold increases, which drives up its price. Therefore, the price of gold is positively related to the expected inflation rate.

The Price of Gold Should Be ________ to the Expected