Question

the world in 2022 experienced a triple shock spanning geopolitical, energy, and economic factors that intertwine and feed off one another. for instance, the spiraling energy prices pushed further the already inflated consumer prices, leading to a situation dangerously reminiscent of the 1970s inflation debacle. the world’s major central banks responded in near-unison to this threat: they announced a series of “big step” interest rate hikes in hopes of reducing prices by depressing business and consumer demand. as a result, many countries in europe face a recession economy in the near future. unfortunately, many economists predict that the prognosis on this energy-driven european crisis will soon become even less auspicious. 11 which development, if true, would most directly support the economists’ prediction? a surging energy prices cause consumers to cut down on spending, leading to a sharp increase in business failures as they were forced to lower prices in response to lower demand. b germany and france, two of the largest european economies, report that imports of energy commodities have decreased significantly following the rate hikes. c european governments attempts to limit energy consumption by enacting a usage cap, which frustrates citizens used to more liberal usage. d russia plants to exploit its control over energy-related exports such as gas as political leverage over its neighbors, leading to further increases in price.

Explanation:

The economists' prediction is that the energy - driven European crisis will become less auspicious (worse). Let's analyze each option:

• Option A: If consumers cut spending and businesses lower prices due to lower demand, this might ease the crisis rather than make it worse. So this option does not support the prediction.
• Option B: A decrease in energy commodity imports after rate hikes does not directly show that the crisis is getting worse. It could be a sign of adjustment, not a worsening of the crisis.
• Option C: Government attempts to limit energy consumption and citizen frustration do not directly relate to the crisis becoming worse. It is more about energy usage policies and citizen reaction.
• Option D: If Russia uses its energy exports as political leverage, leading to further price increases, this will exacerbate the energy - driven crisis in Europe. Higher energy prices will further fuel inflation and economic problems, which supports the economists' prediction that the crisis will become less auspicious.

Answer:

D. Russia plants to exploit its control over energy - related exports such as gas as political leverage over its neighbors, leading to further increases in price.