In the aftermath of the Argentine financial crisis, the government announced it would:
A)reduce import tariffs to zero.
B)control budget deficits.
C)lower real interest rates.
D)choose a different inflation target.

Question

Quizplus · Accepted Answer

Controlling budget deficits would help stabilize the economy and prevent future financial crises. Reducing import tariffs to zero or lowering real interest rates could potentially exacerbate the crisis by increasing the outflow of capital and inflation. Choosing a different inflation target may not address the root cause of the crisis.

In the Aftermath of the Argentine Financial Crisis, the Government