Which are ways that the economy is effected when the unemployment rate goes up? Select all that apply

Fewer people pay income texes••

Sales tax rates go down

Many people refinance their houses••

Less money is spent on investments

People spend more money on larger items

I can only pick two so with two should I pick Ms.Sue

Those are right. I see another right answer, too.

it is A and D not A and C i got question wrong cause of this...

To determine which ways the economy is affected when the unemployment rate goes up, we need to analyze the possible effects of unemployment on different economic factors. Here are the possible impacts:

1. Fewer people pay income taxes: When unemployment increases, more people are out of work, which means that there are fewer individuals paying income taxes. This results in a decrease in tax revenue for the government, potentially leading to budget deficits. So, the economy is certainly affected in this aspect.

2. Sales tax rates go down: Unemployment does not directly affect sales tax rates. Sales tax rates are usually determined by government policies and can change independently of the unemployment rate. Therefore, this statement is not applicable in relation to the effect of unemployment on the economy.

3. Many people refinance their houses: When the unemployment rate rises, individuals may face financial struggles, making it difficult for some to meet their mortgage payments. In such situations, some people may choose to refinance their homes to lower their monthly mortgage payments and ease their financial burden. This can have positive effects in terms of increased stability in the housing market and increased discretionary income for individuals, which in turn can boost consumer spending and stimulate the economy.

4. Less money is spent on investments: As unemployment rises, individuals may become more cautious about investing their money due to economic uncertainty. This can lead to decreased investment activity in the stock market or other economic ventures. Reduced investment can have a negative impact on economic growth and job creation.

5. People spend more money on larger items: When unemployment increases, people tend to have less disposable income. Consequently, they are less likely to spend money on larger items such as houses, cars, or expensive appliances. This decrease in consumer spending on big-ticket items can have a negative effect on various sectors of the economy, such as real estate, automotive, and manufacturing.

So, the ways in which the economy is affected when the unemployment rate goes up are:

- Fewer people pay income taxes
- Many people refinance their houses
- Less money is spent on investments
- People spend less money on larger items

Your answers are probably best. But be sure to check your text.