A sharp downturn in the U.S. housing market in August 2007 reduced the income of many who

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A sharp downturn in the U.S. housing market in August 2007 reduced the income of many who worked in the home construction industry. A Wall Street Journal news article reported that Walmart’s wire-transfer business was likely to suffer because many construction workers are Hispanics who regularly send part of their wages back to relatives in their home countries via Walmart. 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.

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Economics

ISBN: 9781319181949

5th Edition

Authors: Paul Krugman, Robin Wells

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