Answer:
B. Increase, the dollar to appreciate, and net exports to decrease.
Explanation:
When their is increase in price level, their is increase, the dollar to appreciate, and net exports to decrease.
In a case of such, when increase in price level happens it causes foreign bond purchase decrease also.
A case that can explain this better is this pandemic period that has befallen the world and its economy; it is seen that in a country like Nigeria, the high price of dollar makes purchasing and import a herculean tax and also cause decrease in export to boost the said economy causing a shaky economic depreciation which affect peoples lives negatively.
