Consider a textbook situation in which Australia and the USA are experiencing similar low rates of inflation.Then if the rate of inflation were to increase significantly in USA,relative to the Australia,which of the following impacts would be expected to occur?

Question

Quizplus · Accepted Answer

If inflation in the USA increases significantly relative to Australia, the prices of goods and services in the USA would rise, making them more expensive for Australian consumers. This would likely lead to a decline in Australian demand for USA goods and services.

Consider a Textbook Situation in Which Australia and the USA