In the winter of 2001-2002, Argentina's overvalued currency reflected a(n)

Question

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An overvalued currency generally leads to a balance of payments deficit, as it makes exports more expensive and imports cheaper, leading to more imports and fewer exports. This is what happened in Argentina, where the currency was pegged to the US dollar at an overvalued rate, leading to a balance of payments deficit and ultimately a financial crisis. The other options are not relevant to the situation in Argentina.

In the Winter of 2001-2002, Argentina's Overvalued Currency Reflected A(n)