An increase in inflation rates will always lead to a decrease in a country's export levels due to higher prices for foreign buyers. True or False?

The statement is false. While higher inflation can lead to increased prices for goods, which might make exports less attractive to foreign buyers, it doesn't always result in decreased export levels. Sometimes, if a country's goods are still in high demand or if they have unique features, exports can remain strong despite inflation. For example, if a country produces high-quality technology products, foreign buyers may still choose to purchase them even at higher prices because they value the quality. Therefore, the relationship between inflation and exports can be complex and influenced by various factors.