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:

Motor Vehicle Industry

The sector of the economy associated with the production, marketing, and maintenance of motor vehicles.

MC2

A formula representing the equivalence of mass (m) and energy (E), with c2 signifying the speed of light squared, as theorized by Albert Einstein in his theory of relativity.

Cartels

Associations of independent businesses or organizations that collaborate to control prices, limit competition, or regulate the production and distribution of goods and services.

Group Profits

The total profit earned by a collective of companies or entities.