Answer question 2 on page 645 (eBook: p.613) under "Problems", Chapter 30 - Financial Crises, Stabilization, and Deficits.

Book: Principles of economics tenth edition, Case Fair Oster

2. During 1997, stock markets in Asia collapsed. Hong Kong's was down nearly 30 percent, Thailand's was down 62 percent, and Malaysia's was down 60 percent. Japan and Korea experienced big drops as well. What impacts would these events have on the economies of the countries themselves? Explain your answer. In what ways would you have expected these events to influence the U.S. economy? How might the spending of Asians on American goods be affected? What about Americans who have invested in these countries