Question: 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 increased spending for U.S. home and condo construction is likely to affect the performance of the economies of these South American countries.