Which of the following is likely to happen if investors in an economy become optimistic following the discovery of huge mineral reserves?
A) Real wages will fall.
B) Prices will fall.
C) Consumption will increase.
D) Unemployment will increase.

Question

Quizplus · Accepted Answer

If investors become optimistic due to the discovery of huge mineral reserves, it is likely that there will be an increase in investment and job creation in the mining industry. This will lead to an increase in incomes and boosted confidence, thereby raising consumption.

Which of the Following Is Likely to Happen If Investors