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The Increase in Real Oil Prices Since 2002 Did Not

Question 72

Multiple Choice

The increase in real oil prices since 2002 did not immediately cause a U.S. recession. Which of the following is NOT a reason for this?


A) More fuel-efficient cars meant the United States consumed much less oil than in previous decades.
B) The price increases were mainly due to increased demand and were expected.
C) Positive technology shocks balanced the negative oil shocks.
D) The Federal Reserve was able to counteract some aspects of the negative oil shocks.

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