An increase in the expected inflation rate will ________ the ________ for gold,________ its price,everything else held constant.
A)increase;demand;increasing
B)decrease;demand;decreasing
C)increase;supply;increasing
D)decrease;supply;increasing

Question

Quizplus · Accepted Answer

A higher expected inflation rate typically leads investors to seek out inflation-resistant investments such as gold. This increased demand for gold will then lead to an increase in its price. The increase in demand will also lead to an increase in the quantity of gold supplied to the market, but the increase in demand will be greater so the net effect will be an increase in price.

An Increase in the Expected Inflation Rate Will ________ the ________

An Increase in the Expected Inflation Rate Will the