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Which factor caused higher oil prices to directly lead to inflation?
It increased demand for cars, leading to higher automobile prices.
Companies passed on production and transportation costs to consumers.
The government began to print more money.
Gas prices declined too quickly, leading to oversupply

Respuesta :

Answer: B, Companies passed on production and transportation costs to consumers

Explanation:

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A higher oil price occurred when companies passed on production and transportation costs to consumers.

Cause of high price of oil

The oil producing companies spend so much money in producing crude oil from the reservoirs to the surface. They also spend money in processing and transporting the crude oil to the end users or consumers.

The final price of the oil depends on the total amount spent by these companies in producing the hydrocarbons.

Thus, a higher oil price occurred when companies passed on production and transportation costs to consumers.

Learn more about inflations here: https://brainly.com/question/1082634

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