In the short run,an increase in the price of oil will cause
A)an increase in output.
B)a reduction in the price level.
C)an increase in the interest rate.
D)all of the above
E) none of the above

Question

Quizplus · Accepted Answer

In the short run, an increase in the price of oil can lead to higher production costs, which may cause inflationary pressures. Central banks might respond by increasing interest rates to control inflation.

In the Short Run,an Increase in the Price of Oil