solve 20 & 21

Assume we are trading with Brazil and Brazil goes into an expansion and more of their people are working. Then what will happen to our exports to Brazil and why? Then what will happen to our imports of Brazilian goods and why our exports to Brazil will decrease as they can now produce more of their own goods and our imports from Brazil will decrease but not as much as our exports (B) our exports to Brazil will decrease as they can now produce more of their own goods and our imports from Brazil will increase but not as much as our exports decreased our imports from Brazil will decrease and our exports to Brazil will increase by more than our imports had decreased our exports to Brazil will increase, then we now have more money and our imports from Brazil will increase, but our imports will be less than our exports Question 21 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 our business investments will decrease and our exports will increase our business investments will decrease and our exports will decrease our business investments will increase and our imports will increase