If Inflation in Australia Is Lower Than Inflation in Other

question 47

Multiple Choice

If inflation in Australia is lower than inflation in other countries, what will be the effect on net exports for Australia, ceteris paribus?

• A)Net exports will rise as Australian exports increase.
• B)Net exports will rise as Australian imports decrease.
• C)Net exports will decrease as Australian exports decrease.
• D)Net exports will decrease as Australian imports decrease.