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Economic Downturns - Coggle Diagram

- - - - Banks have less money to lend
        
        Businesses can't borrow to expand/improve
        
        Layoffs/unemployment
        
        Government to the rescue
        
        Possible risky/too-good-to-be-true investing
- - - - Creates international demand for the exporters currency
    - - Foreigners are saving and Americans are borrowing it, perpetuating the debt.
- - - - This intervention devalues the dollar
        
        The dollar value is not real but is subjective
        
        At any time, countries could decide they don't see the value in the dollar and stop holding it, accepting it, and demanding it.
    - - Choice 2: Produce more, sell extra to pay debt.
        
        Choice 3: Borrow more, keep consumption up. Debt rises.