Question

A country has an economic boom and can afford to increase imports from a second country. what is likely to happen in the second country? "A country has an economic boom and can afford to increase imports from a second country. What is likely to happen in the second country?

a) a recession
b) an economic boom
c) a depression
d) increased taxes"

Answer 1

When a country experiences an economic boom and can afford to increase imports from a second country, it is likely to have a positive impact on the second country's economy. This can lead to increased demand, economic growth, and improved trade balance.

Step-by-step explanation:

When a country experiences an economic boom and can afford to increase imports from a second country, it is likely to have a positive impact on the second country's economy. There are several reasons for this:

1. Increased Demand: The increase in imports indicates that there is a higher demand for goods and services from the second country. This can lead to increased production and revenue for businesses in the second country.
2. Economic Growth: As a result of increased demand and production, the second country is likely to experience economic growth. This can lead to the creation of new jobs, higher wages, and improved living standards for the people.
3. Trade Balance: The increase in imports can also improve the second country's trade balance. When a country is able to export more goods to another country, it can earn more foreign exchange and reduce its trade deficit.
   

Overall, an economic boom in one country that allows for increased imports from another country can have a positive impact on the second country's economy, leading to increased demand, economic growth, and improved trade balance.