Australian net export spending falls when the:

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Question restatement: The prompt asks when Australian net export spending falls, considering the given options.
Option a: 'value of Australian dollar decreases relative to other currencies.' If the Australian dollar weakens, exports become cheaper for foreign buyers and imports become more expensive for Australian residents, which typically tends to increase net exports or at least not cause them to fall. Therefore, a depreciation of the currency would more likely boost net exports, not reduce them, making this option inconsistent with a fall in net export spending.
Option b: 'inflation rate is lower in Australia relative to other countries.' A relatively lower inflation can influence competitiveness but by itself does not guarantee a fall in net exports. It could affect price stability and real exchange rates, but the statement is not a direct or robust mechanism for a fall in net exports. Therefore this option is not the best rationale for a fall.
Option c: 'economic growth rate of Australian GDP is more rapid than the growth rate of GDP in other countries.' When Australia grows faster than its trading partners, domestic income and demand may rise, increasing imports more than exports. If GDP growth outpaces other countries, the growth differential can widen the trade balance deficit or reduce net exports, since imports rise with higher income while export growth depends on foreign demand. This scenario is a plausible reason for a fall in net exports, as domestic demand drives up imports relative to exports.
Option d: 'price level in Australia falls relative to the price level in other countries.' If Australia's price level falls relative to others (deflation or disinflation), Australian goods become cheaper domestically relative to foreigners? Actually a lower domestic price level typically makes exports cheaper to foreigners and imports relatively more expensive for domestic residents, which would tend to increase net exports. Thus a falling domestic price level would more likely improve net exports, not reduce them, contradicting the idea of a fall in net export spending.
Summary of reasoning: Among the options, option c provides a coherent mechanism where faster Australian GDP growth relative to other nations can widen the trade balance deficit by boosting imports more than exports, leading to falling net export spending. Other options describe effects that either would not reliably cause a fall in net exports or would tend to enhance net exports instead. All together, the reasoning addresses how relative growth affects trade flows and why option c aligns with a decline in net exports, while the alternative choices do not provide as consistent or direct a causal link.

Australian net export spending falls when the:

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