Recall Application 4, "The Locomotive Effect: Why Do Foreign Demand

Recall Application 4, "The Locomotive Effect: Why Do Foreign Demand Affects a Country's Output," to answer the following questions:
-According to the application, the US growth acts as a "locomotive" for the growth rates of other countries because:

A) the US exports new trains to the other countries.
B) other countries will experience a recession when the US grows.
C) the US will experience a recession when the other countries grow.
D) other countries grow when the US grows.

Correct Answer:

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