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Explain How Brazil Was Able to Reduce the Rate of Inflation

question 28

Essay

Explain how Brazil was able to reduce the rate of inflation from 2,669 percent in 1994 to less than 10 percent in 1997?


Definitions:

Opportunity Cost

The act of losing potential gains available through other choices upon selecting one option.

Rancher

A person who owns or manages a ranch, where livestock such as cattle or sheep are raised for meat or wool.

Production Possibilities

A curve depicting all maximum output possibilities for two goods, given a set of inputs consisting of resources and other factors.

Opportunity Cost

Forgoing possible gains from alternative paths when one path is chosen.

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