If Predictions That the World Will Run Out of Oil

question 159

Multiple Choice

If predictions that the world will run out of oil or petroleum in the next century become true, then

• A) the world would run out of energy.
• B) alternative sources would become viable.
• C) economies would grind to a halt.
• D) population will decline due to starvation.

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Definitions:

Excess Reserves

are bank reserves held in excess of what is required by the central bank, which can be lent out to earn interest.

Money Expansion Process

The increase in the total amount of money in circulation or in the money supply, facilitated by mechanisms such as lower interest rates or quantitative easing.

Demand Deposits

Bank account balances that can be accessed and withdrawn by the depositor at any time without advance notice.

Money Supply

The complete value of all money resources in an economy during a particular time frame.