GMAT Critical Reasoning
If there is an oil-supply disruption resulting in higher international oil prices, domestic oil prices in open-market counties such as the United States will rise as well, whether such countries import all or none of their oil.
If the statement above concerning oil-supply disruptions is true, which of the following policies in an open-market nation is most likely to reduce the long-term economic impact on that nation of sharp and unexpected increases in international oil prices?
- A Maintaining the quantity of oil imported at constant yearly levels
- B Increasing the number of oil tankers in its fleet
- C Suspending diplomatic relations with major oil-producing nations
- D Decreasing oil consumption through conservation
- E Decreasing domestic production of oil
Correct Answer: D