The Food Processing Industry in Richland Accounts for 20 Percent

Multiple Choice

The food processing industry in Richland accounts for 20 percent of its GDP.Which of the following will happen if firms in this industry become pessimistic about the future demand for their products? Assume that consumption and government expenditure remain unchanged.

A) Richland's GDP will fall.
B) Richland's inflation rate will increase.
C) Richland's unemployment rate will fall.
D) Richland's interest rate will increase.