What impact did colonial inflation have on the colonial economy?

Question

Quizplus · Accepted Answer

Colonial inflation led to a decrease in colonial exports because their goods became more expensive to foreign buyers, while colonial imports increased due to the availability of cheap foreign goods. This had a negative impact on the colonial economy, as it reduced the demand for domestic goods and led to a drain of colonial currency to pay for imports. The other options are not likely outcomes of colonial inflation.

What Impact Did Colonial Inflation Have on the Colonial Economy