Recall Application 4, "The Locomotive Effect: Why Do Foreign Demand Affects a Country's Output," to answer the following questions:
-According to the Application, a US recession could cause a recession abroad.

Question

Quizplus · Accepted Answer

The application explains that the Locomotive Effect describes how a recession in one country can cause a recession in other countries that export to it, and that the US is a particularly important export destination for many countries. Therefore, a US recession could cause a recession abroad.