If There Is an Increase in the Price of Oil

question 85

Multiple Choice

If there is an increase in the price of oil, then

• A)unemployment rises.If the central bank tries to counter this increase, inflation rises.
• B)unemployment rises.If the central bank tries to counter this increase, inflation falls.
• C)unemployment falls.If the central bank tries to counter this decrease, inflation falls.
• D)unemployment falls.If the central bank tries to counter this decrease, inflation rises.

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Definitions:

Interest

The cost of borrowing money or the return on invested funds, generally expressed as a percentage rate over a period of time.

Allowance for Doubtful Accounts

An estimation of the accounts receivable that a company does not expect to actually collect, reflecting potential losses.

Gross Amount

The total of all amounts before any deductions are made, such as taxes or discounts.

Retailer

A business that sells goods directly to consumers, typically operating out of physical stores or online platforms.