Which components of real GDP are likely to be affected if oil prices soar to new highs, making petrol prices more expensive?

A.Government spending may fall as the government collects less taxes from the sale of petrol.

B.Since oil may be viewed as necessities, although demand for petrol may fall slightly, expenditure may rise, forcing consumers to reduce saving. Investment in renewable energies may rise. The overall change in investment is undetermined.

C.Since oil may be viewed as necessities, although demand for petrol may fall slightly, expenditure may rise, forcing consumers to reduce saving. Investment inevitably falls.

D.Consumption may decline as income fall, and investment may fall across all industries, including the energy sector, due to lower demand.