When the US economy expands, assuming no change in US interest rates, this will lead to a contraction in other countries which is approximately equal to the expansion in the US.

Question

Quizplus · Accepted Answer

The expansion of the US economy does not necessarily lead to an equivalent contraction in other countries. Economic expansion in the US can lead to increased imports from other countries, potentially boosting their economies. The global economic impact depends on various factors including trade relationships, currency exchange rates, and the economic policies of other countries.

When the US Economy Expands, Assuming No Change in US