In a weak economy, which of the following is most likely to occur?

• A. Consumer spending increases significantly.
• B. Inflation rates typically surge.
• C. Business investments rapidly expand.
• D. Unemployment rates tend to rise.

Answer: (D)

Verified step by step guidance

1. Step 1: Understand the economic context described as a 'weak economy,' which generally means economic growth is slow or negative, and overall economic activity is reduced.
2. Step 2: Analyze typical consumer behavior in a weak economy. Consumers usually become cautious, leading to decreased or stagnant consumer spending rather than a significant increase.
3. Step 3: Consider inflation trends in a weak economy. Inflation rates tend to be low or even fall because demand for goods and services weakens, so a surge in inflation is unlikely.
4. Step 4: Evaluate business investment patterns. Businesses often reduce or delay investments during economic downturns due to uncertainty and lower expected returns, so rapid expansion of investments is improbable.
5. Step 5: Recognize that one common consequence of a weak economy is rising unemployment rates, as businesses cut back on production and labor to reduce costs.