Country A specializes in the production of automobiles and 45% of its population works in the automobile manufacturing industry. A sharp increase in world prices for automobiles led to a boom in the automobile manufacturing industry in Country A

However, the automobile manufacturers overestimated the demand for automobiles. This led to overproduction which resulted in a large stock of unsold cars. Which of the following is likely to happen in the near future?
A) Investment in Country A will increase.
B) The supply of credit in Country A will increase.
C) Household consumption in Country A will increase.
D) The unemployment rate in Country A will increase.


D

Economics

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