Recall the Application About the Causes of Oil Price Increases

question 101

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 supply disruptions explain ________ of the variability of oil prices.

• A) about 50 percent
• B) more than 90 percent
• C) only a small fraction
• D) absolutely none

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Definitions:

Environment

The surroundings or conditions in which a person, animal, or plant lives or operates, including natural, social, and built factors.

Timber

Wood that has been processed into beams and planks, a stage in the process of wood production.

Crops

Cultivated plants or agricultural produce, such as grain, vegetables, or fruit, considered as a group.

Removed

Taken away or eliminated from a certain place or position.