Question

Would you be more or less willing to buy gold under the following​ circumstances:  LOADING... Gold again becomes acceptable as a medium of exchange. ▼ Less willing More willing Prices in the gold market become more volatile. ▼ More willing Less willing You expect inflation to​ rise, and gold prices tend to move with the aggregate price level. ▼ More willing Less willing You expect interest rates to rise.

Answer 1

Under different circumstances, your willingness to buy gold can be affected differently. If gold becomes acceptable as a medium of exchange, you would be more willing to buy it. However, if gold prices become more volatile, you would be less willing to buy it. Expectations of rising inflation may increase your willingness to buy gold, but the impact of expected interest rates on gold demand would be uncertain.

Step-by-step explanation:

Under the mentioned circumstances:

1. If gold becomes acceptable as a medium of exchange, you would be more willing to buy gold. This is because gold would gain more utility and demand as a form of currency.
2. If prices in the gold market become more volatile, you would be less willing to buy gold. Volatility increases uncertainties and risks associated with investment.
3. If you expect inflation to rise and gold prices tend to move with the aggregate price level, you would be more willing to buy gold. This is because gold is often considered a hedge against inflation.
4. If you expect interest rates to rise, your willingness to buy gold depends on factors like the opportunity cost of investing in gold as well as the relative returns compared to other investment options. The impact on gold demand would be uncertain.

Answer 2

You would be more likely too