For each of the following events, describe the effect of the event on prices for one of these goods: food, housing, or oil. Make your best guess as to what might happen in the case of each event, and explain your reasoning for why the event might or might not affect prices for a particular good.

1. International terrorists threaten to detonate a nuclear weapon.

2. The Federal Reserve chairman says that the central bank will raise interest rates.

3. A free-trade agreement between the United States and Mexico is enacted.