Economic activity increases in Western Europe, and this causes economic activity to increase in the United States. This is an example of

Question

Quizplus · Accepted Answer

The trade feedback effect refers to the way in which economic activity can spill over from one country to another through trade. In this case, an increase in economic activity in Western Europe leads to an increase in trade with the United States, which in turn leads to an increase in economic activity in the United States.

Economic Activity Increases in Western Europe, and This Causes Economic