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Praxis II Early Education Content Knowledge

Category - Social Studies

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Which of the following is likely to happen when unemployment rates rise?

People spend less money.
Businesses make less money.
There is a rise in bankruptcies.
All of the above

Explanation

Answer: D - When unemployment rates rise, all of the above are true. People spend less money and as a result, businesses make less money. When people cannot pay their bills, there are more bankruptcies.

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