When the Price Level in Australia Rises Relative to the Price

question 79

Multiple Choice

When the price level in Australia rises relative to the price level of other countries, ceteris paribus, ________ will rise, ________ will fall, and ________ will fall.

• A)imports; exports; net exports
• B)exports; imports; net exports
• C)net exports; exports; imports
• D)net exports; imports; exports

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Definitions:

Systematic Risk Factors

Factors that affect the overall financial market and cannot be mitigated through diversification. These include interest rates, inflation, and economic recessions.

Economic Events

Economic events are occurrences with economic impact that affect an entity's financial position and performance, including transactions and market fluctuations.

Market Risk

The likelihood that investors might face losses because of issues impacting the general functioning of the financial markets.

Standard Deviation

A statistical measure of the dispersion or spread of a set of data points in relation to their mean, used to gauge volatility.