If There Is a Sharp Increase in Oil Prices, in the Short

question 103

Multiple Choice

If there is a sharp increase in oil prices, in the short run

• A)consumption and investment will fall.
• B)consumption will fall, investment will increase, and net exports will fall.
• C)consumption, investment, and net exports will stay constant.
• D)consumption will fall while investment and net exports will stay constant.
• E)consumption will fall, net exports will increase, and investment will stay constant.

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Definitions:

FICA Taxes Payable

Amounts owed by employers for their portion of Social Security and Medicare taxes, required to be remitted to the government.

Employer's Payroll Taxes

Employer's Payroll Taxes are taxes that employers are required to pay on behalf of their employees, which can include Social Security, Medicare, and unemployment taxes.

Federal Unemployment Taxes

Taxes paid by employers to fund the federal government's oversight of the state unemployment insurance programs.

Payroll Tax Expense

Represents the taxes that employers are required to pay based on the wages and salaries of their employees; this includes taxes like Social Security and Medicare in the US.