Asked by Deneatra Caesar on Apr 30, 2024
Verified
A key reason that our gasoline prices elevated rapidly from 2006 to 2008 was
A) the decline in the value of the dollar.
B) the war in the Middle East.
C) greed by oil exporting countries.
D) inflation.
Gasoline Prices
The cost per unit of gasoline, influenced by factors such as crude oil prices, refinery processes, taxes, and demand.
The Decline
A period during which economic activity decreases or is expected to decrease.
- Comprehend the importance of exchange rates and the balance of trade within the context of international economics.
Verified Answer
SM
Spencer MacmasterMay 01, 2024
Final Answer :
A
Explanation :
The decline in the value of the dollar was a key reason for the rapid increase in gasoline prices from 2006 to 2008. As the value of the dollar declined, it took more dollars to purchase the same amount of oil, which led to higher prices for gasoline.
Learning Objectives
- Comprehend the importance of exchange rates and the balance of trade within the context of international economics.