The demand for Country Y's most important exportable product-electronic goods-is likely to double over the next 5 years.Which of the following is likely to happen in this case?
A) Asset prices in Country Y will fall.
B) Consumption in Country Y will rise.
C) Investment in Country Y will fall.
D) The unemployment rate in Country Y will rise.

Question

Quizplus · Accepted Answer

With the increase in demand for electronic goods, it is likely that the production of such goods will rise. This will create more job opportunities and a rise in consumption, as people will have more disposable income due to increased employment. Asset prices and investment may or may not be affected by this increase in demand. Therefore, option B is the most appropriate answer.

The Demand for Country Y's Most Important Exportable Product-Electronic Goods-Is