Falling average prices and higher unemployment most likely come from
A) investor pessimism.
B) investor optimism.
C) lower exchange rates.
D) lower interest rates.
E) lower income tax rates.

Question

Quizplus · Accepted Answer

Falling average prices and higher unemployment are often associated with economic downturns, which can be exacerbated by investor pessimism. Pessimistic investors may sell off assets, leading to lower asset prices and reduced investment in businesses, which can then lead to layoffs and higher unemployment.

Falling Average Prices and Higher Unemployment Most Likely Come from