In addition to oil price increases in 2008,
A)natural gas prices fell.
B)the interest rate premium fell.
C)commodity prices also rose.
D)inflation remain unchanged.
E)aggregate supply increased.

Question

Quizplus · Accepted Answer

Commodity prices often move together, so it is reasonable to expect that they would rise along with oil prices in 2008. Therefore, choice C is the best option. Choices A, B, D, and E are incorrect because there is no evidence to suggest that natural gas prices fell, the interest rate premium decreased or inflation remained unchanged. Additionally, aggregate supply may have increased, but this information is not provided in the question stem.

In Addition to Oil Price Increases in 2008