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.
1 and 2
2 and 3
1 and 3 only
1, 3 and 4
Answer is Wrong!
Answer is Right!
This question was previously asked in
UPSC CDS-2 – 2016