If people suddenly start to expect the price of oil to rise less rapidly than the interest rate, the demand for oil ________ and the supply of oil ________.

Question

Quizplus · Accepted Answer

If people expect the price of oil to rise less rapidly than the interest rate, they may prefer to invest their money elsewhere, leading to a decrease in demand. Simultaneously, suppliers may want to sell more now before prices rise less than expected, increasing supply.

If People Suddenly Start to Expect the Price of Oil