Question

A high rate of inflation tends to worsen balance of payments because

Answer 1

increasing private incomes, economic growth also generates additional resources that can be used to improve social services such as healthcare, safe drinking water. By generating additional resources for social services, unequal income distribution will be mitigated as such social services are distributed equally across each community, thereby benefiting each individual. Concisely, the relationship between human development and economic development can be explained in three ways. First, increase in average income leads to improvement in health and nutrition known as Capability Expansion through Economic Growth. Second, it is believed that social outcomes can only be improved by reducing income poverty known as Capability.