All else equal, if oil prices increase, annual oil consumption will ________ and the years it will take to deplete the stock of oil will most likely ________.
A) decrease; increase.
B) decrease; decrease
C) increase; increase
D) increase; decrease
Question 2
The change illustrated in the figure above is part of the transmission process of the Fed's monetary policy.
As a result of the increase in the supply of loanable funds, in the short run aggregate demand ________, aggregate supply ________, and potential GDP ________.
A) increases; does not change; does not change
B) increases; increases; increases
C) decreases; increases; increases
D) increases; decreases; decreases
E) decreases; decreases; decreases
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