A high rate of inflation tends to worsen balance of payment because :

A) (a) prices of imported goods rise
B) (b) prices of exported goods rise making exports less competitive

C) (c ) prices of imported goods fall and hence more is imported
D) (d) prices of exported goods fall and hence less amount is obtained in terms of
foreign exchange

Correct answer:
B) (b) prices of exported goods rise making exports less competitive


Please provide the error details in above question

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