Everything else held constant, would an increase in volatility of stock prices have any impact on the demand for rare coins? Why or why not?

What will be an ideal response?

Yes, it would cause the demand for rare coins to increase. The increased volatility of stock prices means that there is relatively more risk in owning stock than there was previously and so the demand for an alternative asset, rare coins, would increase.

Economics

You might also like to view...

John Maynard Keynes argued that the fundamental problem which led to the world depression was

A) insufficient demand for goods and services. B) a shortage of goods and services. C) negative net exports on goods and services. D) a decreasing supply of goods and services.

Economics

In which phase of the business cycle will the economy most likely experience rising real output and falling unemployment rates?

A. Expansion. B. Recession. C. Peak. D. Trough.

Economics