Fears of an Impending Civil War in Baltonia Have Reduced

Multiple Choice

Fears of an impending civil war in Baltonia have reduced the confidence of potential investors.Assuming all else equal,which of the following is likely to happen in this case?

A) The demand for labor in Baltonia will fall.
B) The equilibrium real wage in Baltonia will rise.
C) The consumption expenditure in Baltonia will rise.
D) The supply of labor in Baltonia will fall.