Suppose that the price of oil today is $20 and the interest rate is 5%.Further,suppose that the interest rate remains unchanged and no new discoveries of oil are made.If 2 years from now,the price of oil is $21.50,from the economist's point of view which of the following statements is correct?
A)The rate of oil extraction has been too slow.
B)The rate of oil extraction has been too rapid.
C)The rate of oil extraction has been exactly right.
D)The rate of oil extraction has been either exactly right or too slow but it definitely could not have been too rapid.

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The Answer of Suppose that the price of oil today is $20 and the interest rate is 5%.Further,suppose that the interest rate remains unchanged and no new discoveries of oil are made.If 2 years from now,the price of oil is $21.50,from the economist's point of view which of the following statements is correct?
A)The rate of oil extraction has been too slow.
B)The rate of oil extraction has been too rapid.
C)The rate of oil extraction has been exactly right.
D)The rate of oil extraction has been either exactly right or too slow but it definitely could not have been too rapid.

Suppose That the Price of Oil Today Is $20 and the Interest