Suppose That the Current Price of Oil Is $60 a Barrel

question 146

Multiple Choice

Suppose that the current price of oil is $60 a barrel and the interest rate is 3%.Further,suppose that the interest rate remains unchanged and no new discoveries of oil are made.If two years from now the economist for the National Petroleum company believes that the rate of oil extraction is exactly right,believes that the rate of oil extraction has been too slow,what would be the likely price for a barrel of oil at that time?

• A)Above $63.60 a barrel
• B)$63.60 a barrel
• C)Below $63.60 a barrel
• D)Below $60 a barrel

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Definitions:

Monosaccharide

The simplest form of carbohydrates, consisting of a single sugar molecule like glucose or fructose.

Glucose

An essential sugar which is a key source of energy for living entities and a constituent of various carbohydrates.

Disaccharide

A class of sugars composed of two monosaccharide molecules bonded together, such as sucrose or lactose.

Hydrogen Ion

A positively charged atom of hydrogen, symbolized as H+, crucial in acid-base balance and cellular energy processes.