Deflation as a measure of correcting deficit in BOP tends to make
A)domestic goods relatively cheaper to foreign goods
B)domestic goods relatively dearer to foreign goods
C)foreign goods relatively cheaper to domestic goods
D)foreign goods relatively dearer to domestic goods

Question

Quizplus · Accepted Answer

Deflationary policies reduce the overall price level in an economy, making domestic goods relatively cheaper compared to foreign goods.

Deflation as a Measure of Correcting Deficit in BOP Tends