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In Late 1994 and Early 1995, the Mexican Peso Fell

Question 113

Multiple Choice

In late 1994 and early 1995, the Mexican peso fell by more than 40 percent.In an effort to strengthen the peso, the then President of Mexico Zedillo concentrated on the effects of inflation on the value of the peso.His plan most likely included:


A) increasing government spending.
B) increasing the money supply.
C) increasing domestic taxes.
D) decreasing domestic taxes.

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