Given the data on the US trade balance (known as net export) below: FRED Millions of Dollars -20.000 -40.000 -30,000 -100.000 -120,000 -Trade Balance: Goods and Services, Balance of Payments Basis 1994 Shaded areas indicate US recessions 1996 2000 2002 Sources: U.S. Census Bureau US Bureau of Economic Analysis mupos 2014 2018 2020 2022 tred stlouisted org (5 points) During the pandemic, the US net export took a large dip (see arrow). How did this affect the trade deficit of the US? b. (10 points) Explain what might be causing this dip. c. (5 points) When US net export decreases (as shown in the graph), explain how this would affect the interest rate via the market for loanable funds. Include a graph for the market for loanable funds for full credit. Hint: Recall that we have this equation: Net Export= Net Capital Outflow We also have this equation: Saving Domestic Investment + Net Capital Outflow Supply of loanable funds Demand of loanable funds When Net Export decreases, what would happen to Net Capital Outflow? How would this affect the market for loanable fund? Given the data on the US trade balance (known as net export) below: FRED Millions of Dollars -20.000 -40.000 -30,000 -100.000 -120,000 -Trade Balance: Goods and Services, Balance of Payments Basis 1994 Shaded areas indicate US recessions 1996 2000 2002 Sources: US Census Bureau US Bureau of Economic Analysis mupos 2014 2018 2020 2022 fredstioulsted org (5 points) During the pandemic, the US net export took a large dip (see arrow). How did this affect the trade deficit of the US? b. (10 points) Explain what might be causing this dip. c. (5 points) When US net export decreases (as shown in the graph), explain how this would affect the interest rate via the market for loanable funds. Include a graph for the market for loanable funds for full credit. Hint: Recall that we have this equation: Net Export= Net Capital Outflow We also have this equation: Saving Domestic Investment + Net Capital Outflow Supply of loanable funds Demand of loanable funds When Net Export decreases, what would happen to Net Capital Outflow? How would this affect the market for loanable fund?