Answer
If the restrictions in imports were lifted, then there would be a decrease in the amount of net exports. (This would shift the demand curve to the left for the foreign exchange rate graph.)
The shift in the demand curve would decrease the exchange rate, which then increase the amount of net exports.
Work Step by Step
The net capital outflow doesn't change, and net exports is the same as net capital outflow. Thus, there is no change in the differences between net exports and the trade balance.
Thus, both imports and exports increase.
