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

Question

Quizplus · Accepted Answer

To combat inflation and strengthen the peso, increasing domestic taxes could be a strategy used by a government. This approach can help reduce consumer spending, which in turn can help lower inflation. Reducing inflation is crucial for strengthening a currency's value. Options A and B would likely exacerbate inflation, and decreasing domestic taxes (D) could increase consumer spending, potentially increasing inflation further.

In Late 1994 and Early 1995, the Mexican Peso Fell