Recall the Application About the Causes of Oil Price Increases

Multiple Choice

Recall the Application about the causes of oil price increases to answer the following question(s) . Economist Lutz Kilian examined the importance of supply disruptions to the U.S. oil market by constructing measures of supply disruptions in oil producing countries based on a detailed examination of prior trends in demand and specifications in oil contracts.
-According to this Application, oil supply disruptions explain ________ of the variability of oil prices.

A) about 50 percent
B) more than 90 percent
C) only a small fraction
D) absolutely none