Spices is a major part of India’s export, higher prices of it will __________ (shrink/ expand) Current account surplus.

Solution                                                                                                                                                                                                           Expand                                                                                                                                                                                                         

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Current account surplus is a positive current account balance refers that the particular country facing more exports than imports in goods and services . Higher prices of spices means that their there is more demand of spices in international market because when demand of commodity increases price also increases this shows that there is more demand of spices. When there is more demand of commodity in international market the country will export more goods . This will expand our current account surplus
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