If consumers in country A purchase many imported-from-country-B goods, and these imported goods are perceived by country A consumers as inferior goods, then a recession (which in this case is defined as a decline in consumer incomes) in country A can spread into country B.

Question

Quizplus · Accepted Answer

Inferior goods see an increase in demand when consumer incomes decline, so a recession in country A could actually increase demand for country B's goods, not spread the recession.

If Consumers in Country a Purchase Many Imported-From-Country-B Goods, and These