Recall the Application About the Causes of Oil Price Increases

question 8

Multiple Choice

Recall the Application about the causes of oil price increases to answer the following question(s) . Economist Lutz Kilian examined the importance of supply disruptions to the U.S. oil market by constructing measures of supply disruptions in oil producing countries based on a detailed examination of prior trends in demand and specifications in oil contracts.
-According to this Application, if speculators believe oil prices are going to rise in the future, they will ________ oil now, which will tend to ________ the current price of oil.

• A) buy; decrease
• B) buy; increase
• C) sell; decrease
• D) sell; increase

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Definitions:

Memorization

The process of committing information to memory for recall and recognition at a later time.

Puberty

The developmental stage during which children's bodies begin to develop and change into adult bodies, capable of sexual reproduction, marked by hormonal changes and physical growth.

Prepubescent

Describes a phase in human development immediately preceding puberty, during which sexual features are not yet developed.

Lower-Than-Normal IQ

A measure of cognitive ability that is significantly below the average score for the population.