EBK ECONOMICS
4th Edition
ISBN: 8220101443649
Author: KRUGMAN
Publisher: YUZU
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Question
Chapter 1, Problem 14P
To determine
Determine:
Effects on the Mexican economy of reduced spending in US home purchases.
Concept Introduction
One person’s spending becomes another person’s income: In a market, people make their living by selling things to one another. Large spending of one group results in a high income of the other and vice-versa. This is because one person's spending becomes another person’s income. If a person is willing to pay, then only it will become earning for the other. These repercussions play an important role in recession and in its recoveries.
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