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 imports decrease. d. Net exports will decrease as Australian exports decrease.

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. net​ exports; imports; exports b. net​ exports; exports; imports c. exports; imports; net exports d. imports; exports; net exports

f the Australian dollar appreciates, the effect of this is likely to be that:Group of answer choicesexports will be more expensiveimport-competing domestic goods will be relatively cheaper‘imported disinflation’ may become a benefitimports will be more expensive‘imported inflation’ may become a problem

Consider a textbook situation in which Australia and the USA are experiencing similarly low rates of inflation. Then if the rate of inflation were to decrease significantly in USA, relative to the Australia, which of the following impacts would be expected to occur?Group of answer choicesAustralian demand for USA goods and services would increase.There should be a decrease in Australian demand for the US dollar.There would be a decrease in the supply of AUD in the FX markets.The prices of goods and services in USA would increase in USD terms. PreviousNext

Complete the statement below.If a country’s inflation rate is lower relative to other countries, its exports will become relatively   , so foreign consumers will buy    of its exports. This means that export revenue will   , which will    the current account.Submit

Which of the following aspects of the economy will be increased during inflation?A. ExportB. SavingC. ImportD. Consumption