In the 1990s, inflation in many Latin American countries fell to about 10 to 15 percent per year, compared to previous rates of up to 1,000 percent a year in the 1980s. You would expect that as this occurred, the value of many Latin American currencies would:

Question

Quizplus · Accepted Answer

A significant reduction in inflation rates typically strengthens a currency's value or at least slows its depreciation. Lower inflation rates suggest an improving economic environment, which can lead to increased confidence in the currency, making it fall less rapidly compared to when inflation rates were higher.

In the 1990s, Inflation in Many Latin American Countries Fell