Suppose That the European Union Experiences a Recession and This

Multiple Choice

Suppose that the European Union experiences a recession and this causes a decline in income in the European Union relative to Australia. Because of this, the dollar will, ceteris paribus:

A) appreciate, and Australian net exports will fall.
B) depreciate, and Australian net exports will rise.
C) appreciate, and Australian net exports will rise.
D) depreciate, and Australian net exports will fall.