Concept explainers
A sharp downturn in the U.S housing market August 2007 reduced the income of many who worked in the home construction industry. A wall street journal news article reported that Wal-Mart’s write-transfer business was likely to suffer because many construction workers are Hispanics who regularly send part of their wages back to relative in their home countries via Wal-Mart. With this information use one of the principles of economy-wide interaction to trace a chain of links that explains how reduced spending for U.S home purchases is likely to affect the performance of the Mexican economy.
Concept Introduction:
One person’s spending is another person’s income
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