The three oil shocks the U.S.experienced in 1973-1974,1979-1980 and 2007-2008 had a consistent result ________.
A)a decline in the MPK
B)a decline in the real rental price of capital
C)a decline in stock prices
D)all of the above
E)none of the above

Question

Quizplus · Accepted Answer

The three oil shocks resulted in a decline in the MPK (Marginal Product of Capital), a decline in the real rental price of capital, and a decline in stock prices. These factors were all impacted by the rise in oil prices and the resulting increase in production costs for firms, which led to a decrease in investment and economic growth.

The Three Oil Shocks the U