Question

washington, d.c. (achieve3000, february 3, 2015).
you might have heard people talk about \the
economy,\ which refers to the use of money and other
resources in our society. the economy is often in the
news because it affects everyone—citizens,
businesses, and governments. when the economy is
strong, leaders work to keep it that way. when the
economy is weak, leaders try to fix it. many u.s.
presidents have taken action to improve a weak
economy. one example is president jimmy carter.
carter was elected in 1976.
when president carter took office, the u.s. economy
was suffering from the effects of a recession, which
is a slowdown in economic activity. consumer
spending was low. this hurt businesses. at the same
time, prices for goods and services continued to rise.
struggling businesses laid off workers. this caused a
rise in unemployment. carter set out to address all of
these problems.
carter believed that the government could strengthen the economy through actions
designed to put money back in people’s pockets. through his plan was designed to
benefit all americans, he would concentrate on helping those with lower incomes.
these americans, carter believed, were the most likely to struggle to pay their bills and
to buy necessary goods. if these americans had more money, carter reasoned, they

which best replaces the question mark in the box above?
a. consumer spending was low.
b. unemployment in the united states rose.
c. many americans were unhappy.
d. carter suggested tax cuts for businesses.

(image of jimmy carter and a flowchart with cause and effects related to the economy during carters presidency)

Explanation:

The diagram shows a cause leading to two effects: businesses laying off workers and prices rising. We need to find the cause. Option A (Consumer spending was low) would lead to businesses struggling (so they lay off workers and raise prices to compensate), which matches the effects. Option B is an effect, C is a reaction, D is a solution, not a cause.

Answer:

A. Consumer spending was low.