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Omveer • 5.26K Points
Tutor III Economic

Q. Why a high rate of inflation tends to worsen balance of payments ?

  • (A) Prices of imported goods rise
  • (B) Prices of imported goods fall and hence more is imported
  • (C) Prices of exported goods rise making exports less competitive
  • (D) Prices of exported goods fall and hence less amount is obtained in terms of foreign exchange
  • Correct Answer - Option(C)
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  • Filed under category Economic

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