Economics Homework Help

2. During the improving economic conditions of

2015 and early 2016 much additional construction of homes and condos throughout

much of the U.S. took place. This provided a significant increase in the income

of workers in the construction trades.

Many of the construction workers were immigrants and have family and

relatives in other countries. Often these workers would send part of their

income to their less fortunate relatives in their old country, especially in

Mexico and some of the South American countries.

a. Which of the economic principles best describes this situation?

b. Using the principle you have selected, describe the chain of events

that best explains how the increased money sent to families in these South

American countries will cycle through the economy of that country and what

overall affect it will have within the economy.