Why did the subprime mortgage crisis in the United States cause other countries to also enter economic downturns?

A. Mortgage lenders were foreclosing on homes in other countries.

B. The global economy is intertwined with the U.S. economy.

C. Other countries had invested heavily in subprime loans.

D. The U.S. economy supports the entire global economy.

The U.S. financial markets have extensive links to other countries´s financial systems. So, the crisis and the subsequent deterioration of the environment of the American financial system had a severe impact on business and economies all around the world. US banks are investors abroad. There were also loss of GDP, losses of jobs and rising unemployment, more difficulties in getting access to funding, and decreasing US demand for many countries that have the US as a top export destination. Those are some effects of the US subprime mortgage crisis.

jayilych4real jayilych4real · Answer 2 · 2021-10-22T14:58:31+02:00

The subprime mortgage crisis in the United States that caused other countries to also enter economic downturns is:

B. The global economy is intertwined with the U.S. economy.

According to the economic system of the United States, we can see that the things like:

Fall in the Gross Domestic Product (GDP)
Rising unemployment
Increase in national debt, etc

These all contributes to the downward turn in the economy of the UNited States which has an effect on other countries.

As a result of this, we can see that this subprime mortgage crisis in the United States had an adverse effect on the economy of other countries because they were intertwined with the US economy.

Therefore, the correct answer is option B