The term contagion refers to

Question

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Contagion refers to the spread of economic crises from one country or region to others, often causing a ripple effect of negative consequences. This can happen when markets are interconnected and events in one part of the world affect the economies of others. Healthy economies can be vulnerable to crises generated by events elsewhere, which can lead to contagious effects. A and D are incorrect because they do not accurately describe the concept of contagion. B is incorrect because a drop in interest rates is not necessarily related to contagion. E is partially correct, but does not capture the full meaning of contagion as it can refer to negative effects spreading beyond just trade.

The Term Contagion Refers to