When Argentina Experiences a Period of High Inflation and Argentineans

question 6

Multiple Choice

When Argentina experiences a period of high inflation and Argentineans lose confidence in their peso as a store of value, which of the following would be least likely to occur?

• A) The demand for pesos would decrease.
• B) The buying power of the peso would decrease.
• C) The value of foreign currencies would depreciate relative to the peso.
• D) Argentineans would use a different currency as a medium of exchange.

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