Question

Which of the following will be the outcome if an economy is under the inflationary pressure?
1.Domestic currency heads for depreciation.
2.Exports become less competitive with imports getting costlier.
3.Cost of borrowing decreases.4.Bondholders get benefitted.
Select the correct answer using the code given below.
A) 1 and 2 B) 2 and 3 C) 1 and 3 only D) 1, 3 and 4

Answer 1

Answer:

1 and 3 only

Explanation:

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