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Economics, Accounting & Business: Post your doubts here!

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View attachment 42382
ans is A can someone explain what is the relationship betwween inflation rate and imports and bop? like if inflation is high how will it affect the bop?

Inflation high -> Domestic prices rise -> Export prices become more expensive and import prices become cheaper
If there's a fall in its inflation rate, then export prices will decrease and import prices increase -> leads to deterioration in terms of trade
 
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