As a result of the 2003 war in Iraq,some MNCs feared that oil prices would ______ and that U.S.inflation and interest rates would _______.

Question

Quizplus · Accepted Answer

The 2003 war in Iraq caused disruptions in oil production and supply, leading to fears of a rise in oil prices. As oil is a critical input for many industries, an increase in oil prices could lead to higher production costs and inflation. Higher inflation, in turn, could prompt the Federal Reserve to raise interest rates to control inflation, leading to higher borrowing costs and lower economic growth. Therefore, the most likely scenario would be that both oil prices and U.S. inflation and interest rates would rise, making option A the best choice.

As a Result of the 2003 War in Iraq,some MNCs