Country a Specializes in the Production of Automobiles, and 45

Multiple Choice

Country A specializes in the production of automobiles, and 45 percent of its population works in the automobile manufacturing industry. A sharp increase in the world prices of automobiles led to a boom in the automobile manufacturing industry in Country A. However, the automobile manufacturers overestimated the demand for automobiles. This led to overproduction, which resulted in a large stock of unsold cars. Which of the following is likely to happen in the near future?

A) The unemployment rate in Country A will increase.
B) Household consumption in Country A will increase.
C) Investment in Country A will increase.
D) The supply of credit in Country A will increase.