McqMate
| Q. |
A high rate of inflation tends to worsen balance of payments because: |
| A. | prices of imported goods rise |
| B. | prices of exported goods rise making exports less competitive |
| C. | prices of imported goods fall and hence more is imported |
| D. | prices of exported goods fall and hence less amount is obtained in terms of foreign exchange |
| Answer» B. prices of exported goods rise making exports less competitive | |
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