Suppose Oil Prices Rise

question 352

Multiple Choice

Suppose oil prices rise. The Fed can___________ the quantity of money to ___________the unemployment rate back to its natural rate.

• A) decrease; raise
• B) increase; raise
• C) increase; lower
• D) decrease; lower

---

Definitions:

Straight-Line Depreciation

An approach to apportion the expense of a tangible resource over its effective life period in consistent annual installments.

Incremental Cash Flow

The additional cash flow a company receives from undertaking a new project, distinct from its existing cash flow.

Lease Payments

Periodic payments made by a lessee to a lessor for the use of an asset, like equipment or real estate, over a specified lease term.