Next year's expected price of oil is $90 per barrel. If the interest rate climbs from 5 percent to 20 percent per year and nothing else changes, then according to the Hotelling Principle the price of oil this year

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According to the Hotelling Principle, the price of a non-renewable resource like oil should rise at the rate of interest. If the interest rate increases, the current price should decrease to ensure that the expected future price aligns with the higher rate of return.

Next Year's Expected Price of Oil Is $90 Per Barrel