Respond succinctly and precisely to each of the following scenarios. Hint: these are beginning with a currency value change; start from there, and do not consider what caused the change.   (h) The European Union and Brazil are trade partners. Brazil's currency, the real, appreciates relative to the European Union's euro. Ceteris paribus, how will this change affect: Brazil's net exports? Explain. the capital and financial account of Brazil?

ENGR.ECONOMIC ANALYSIS
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Respond succinctly and precisely to each of the following scenarios. Hint: these are beginning with a currency value change; start from there, and do not consider what caused the change.

 

(h) The European Union and Brazil are trade partners. Brazil's currency, the real, appreciates relative to the European Union's euro. Ceteris paribus, how will this change affect:

  1. Brazil's net exports? Explain.

  2. the capital and financial account of Brazil?

  3.  
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