Assume that we are at the natural rate of GDP, meaning we do not have a recession or an expansion, and then the Central Bank raises interest rates, how can this create a recession our business investments will increase and our exports will decrease (B) our business investments will decrease and our exports will increase our business investments will decrease and our exports will decrease (D) our business investments will increase and our imports will increase Question 22 Assume that you, as an American, want to buy UK bonds because the UK bonds have a higher interest rate. What do you need to also consider before you buy UK bonds. An example would be, suppose that USA bonds pay 3% and UK bonds pay 7%, then what do you need to consider before buying UK bonds the British pound will not appreciate by more than 4% (B) that the American dollar will not appreciate by more than 4% (C) that the American dollar will not depreciate by more than 4% D the nominal exchange rate will remain stable