QuestionAugust 9, 2025

Read this news report about a planned devaluation of the bolivar, the currency.of Venezuela. The president of Venezuela announced that the country would be devaluating the bolivar for the fifth time in nine years. The official rate is falling from 4.3 bolivars to the dollar, to 63. a 32% devaluation. By increasing the bolivar value of exports of oil to the US and other nations, the government hopes to alleviate a budget crisis caused by its increasing reliance on borrowing to meet spending obligations. In response to the announcement, the people of Venezuela lined up today to buy televisions, electronics, and airline tickets in order to protect themselves from projected price increases. Venezuelans started buying items immediately because of their fear of rising inflation. price deflation. declining inflation. increased imports.

Read this news report about a planned devaluation of the bolivar, the currency.of Venezuela. The president of Venezuela announced that the country would be devaluating the bolivar for the fifth time in nine years. The official rate is falling from 4.3 bolivars to the dollar, to 63. a 32% devaluation. By increasing the bolivar value of exports of oil to the US and other nations, the government hopes to alleviate a budget crisis caused by its increasing reliance on borrowing to meet spending obligations. In response to the announcement, the people of Venezuela lined up today to buy televisions, electronics, and airline tickets in order to protect themselves from projected price increases. Venezuelans started buying items immediately because of their fear of rising inflation. price deflation. declining inflation. increased imports.
Read this news report about a planned devaluation of
the bolivar, the currency.of Venezuela.
The president of Venezuela announced that the country
would be devaluating the bolivar for the fifth time in
nine years. The official rate is falling from 4.3 bolivars to
the dollar, to 63. a 32%  devaluation. By increasing the
bolivar value of exports of oil to the US and other
nations, the government hopes to alleviate a budget
crisis caused by its increasing reliance on borrowing to
meet spending obligations.
In response to the announcement, the people of
Venezuela lined up today to buy televisions,
electronics, and airline tickets in order to protect
themselves from projected price increases.
Venezuelans started buying items immediately because
of their fear of
rising inflation.
price deflation.
declining inflation.
increased imports.

Solution
4.0(266 votes)

Answer

rising inflation. Explanation 1. Identify the economic concept The devaluation of a currency typically leads to inflation, as imported goods become more expensive. 2. Analyze the people's reaction People buying goods immediately indicates they are trying to avoid future price increases, which is consistent with expectations of rising inflation.

Explanation

1. Identify the economic concept<br /> The devaluation of a currency typically leads to inflation, as imported goods become more expensive.<br /><br />2. Analyze the people's reaction<br /> People buying goods immediately indicates they are trying to avoid future price increases, which is consistent with expectations of rising inflation.
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