Question 14 • GA-GSE World Geography B
Answer:
Responses may vary but should include some or all of the following information: People in the US purchase more products from other countries, such as China, than those countries purchase from the US. As a result, other countries have a surplus of US dollars that they invest in US instruments like real estate or treasury bills. That provides those countries the ability to influence the US economy by pulling out their investments. US stock markets allow people to invest in financial products around the world. Stock markets in other countries allow foreigners to invest in the United States. The subprime mortgage crisis that struck the US in 2008 had a worldwide impact because so many people in other countries had invested in US real estate and related financial instruments.