Question #_6_; In response to Iraqis invasion ofKawait in 1990, the United States and allies imposed trade and nancial sanctions on Iraq. Imports of Iraqi oil were terminated as were exports of machinery, parts, and the like, to Iraq. Bank loans to Iraq and business investment in Iraq were also curtailed. Illustrate the effects of the economic sanctions on Iraq's production possibilities curve for textiles and oil. The termination of Iraqi oil imports to other countries means there would have been an increase in consumer goods with more oil being immediately available to Iraqi citizens. Therefore, the y-axis value would rise. Also, the financial sanctions such as blocked bank loans to Iraq and business investment in Iraq would hurt factories making goods, such as textiles, for the future. Therefore, the future economic growth potential, or capital goods, would be greatly reduced. This would make the xaxis value smaller