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:

New Evidence

Recent information or data that offering fresh insights, usually changing or confirming existing understandings.

Behavioral Finance

A field of finance that proposes psychology-based theories to explain stock market anomalies and investing behaviors.

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The cost at which securities, such as stocks or bonds, are bought and sold in the market, determined by supply and demand dynamics.

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Guidelines or principles, often based on timing and price, that traders may follow in making buying and selling decisions in the financial markets.