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

Question

Quizplus · Accepted Answer

Oil supply disruptions explain only a small fraction of the variability of oil prices, indicating that other factors also play significant roles in oil price fluctuations.

Recall the Application About the Causes of Oil Price Increases