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Author Question: Explain how Brazil was able to reduce the rate of inflation from 2,669 percent in 1994 to less than ... (Read 82 times)

Themember4

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on: Jun 30, 2018
Explain how Brazil was able to reduce the rate of inflation from 2,669 percent in 1994 to less than 10 percent in 1997?
 
  What will be an ideal response?

Question 2

Countervailing duties are intended to neutralize any unfair advantage that foreign exporters might gain because of foreign
 
  A) tariffs.
  B) subsidies.
  C) quotas.
  D) Local-Content legislation.
  E) comparative advantage.


Carissamariew

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Reply #1 on: Jun 30, 2018
Answer to Question 1

By introducing a new currency and initially pegging it to the dollar. At the cost of widespread bank failures, high interest rates in 1995 and the shift to a fixed upwardly crawling peg and a substantial real appreciation of the local currency.

Answer to Question 2

B


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