A beggar-thy-neighbor effect arises when an expansionary policy action in one nation causes a _________ effect on another nation-s economy due to structural __________.

Question

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A beggar-thy-neighbor effect occurs when a country's expansionary policy (like devaluing its currency) negatively impacts another country's economy, highlighting the structural interdependence between nations. This is because such policies often aim to boost a country's own economic situation at the expense of others, typically through shifting demand away from foreign products in favor of domestic ones.

A Beggar-Thy-Neighbor Effect Arises When an Expansionary Policy Action in One