Recall the Application About the Causes of Oil Price Increases

question 155

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, oil price increases may be caused by

• A) increases in world demand.
• B) increases in world supply.
• C) increase in the U.S. supply of money.
• D) beneficial supply shocks for the U.S. consumer.

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Definitions:

Tire Pressures

The amount of air pressure in tires, critical for optimal vehicle performance and safety.

Overload

A condition where the current flowing through an electrical circuit exceeds the designed capacity, potentially causing damage or failure.

Footprint

The critical contact interface between a tire and the road surface it contacts. Also used to describe the ground uplink/downlink geographic signal area of a satellite communications system; for instance, a truck can move through multiple communication footprints on a cross-continental trip.

Premature Wear

Excessive and early degradation of a component or system, occurring before expected wear out.