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 6.3, 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

a) rising inflation.

b) price deflation.

c) declining inflation.

d) increased imports.

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Ethan Barton

22 February, 22:47

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 6.3, 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

a) rising inflation.

b) price deflation.

c) declining inflation.

d) increased imports.

+5

Answers (2)

Know the Answer?

Darion Brennan · Answer 1

Rising inflation, because they were protecting the

Selves from price increases, so that means the prices were rising

Aliza · Answer 2

The correct answer is a) rising inflation.

The fear of Venezuelans has generated one of the most dangerous crisis in the history of the country, causing poverty and violence to increase dramatically.

President Nicolas Maduro's economic policies are been considered unorthodox and difficult to understand. Foreign exchange reserves have been falling constantly and inflation rate is almost rising 40,000 percent annually.

Thousands of Venezuelans are trying to immigrate to Colombia.