Question

If private investors put a lot of money into the U.S. economy, the gross domestic product will increase. What else will likely occur?

A decrease in inflation and in the unemployment rate

An increase in inflation and in the unemployment rate

An increase in the unemployment rate and a decrease in inflation

An increase in inflation and a decrease in the unemployment rate
@jim_thompson5910
I think it the last one

Answer 1

A and B are definitely out because inflation and unemployment are inversely related (for the most part, there are other factors though)

Answer 2

that means if unemployment goes up, then inflation goes down

or

if unemployment goes down, then inflation goes up

this is a very simplistic view and there are other factors of course

Answer 3

" An increase in the unemployment rate and a decrease in inflation" is false because investments in businesses in the US means you need workers to work on those projects (example: building a bridge)

Answer 4

so I agree, it's D