Question

which factor caused higher oil prices to directly lead to inflation?

A. It increased the demand for cars, leading to higher auto mobile prices.

B. Companies passed on production and transportation costs to consumers.

C. The government began to print more money.

D. Gas prices declined too quickly, leading to over supply.

Answer 1

The government began to print more money was the factor caused higher oil prices to directly lead to inflation.

Answer: Option C

Explanation:

The increase in the ‘money supply’ which happens faster than the economic growth leads to inflation. When the government prints more money then it brings down the value of the money in the market. The oil prices are affected by the extra amount of money which entered the economy and resulted in higher oil prices leading to inflation.

Answer 2

Answer:

the answer is B

Explanation:

jus got it right :)