Which of the following actions by the Mexican government in December 1994,exacerbated the sale of the peso and contributed to the rapid 40 percent drop in its value?

Question

Quizplus · Accepted Answer

In mid-December 1994,the Mexican government abruptly announced a devaluation.Immediately,much of the short-term investment money that had flowed into Mexican stocks and bonds over the previous year reversed its course,as foreign investors bailed out of peso-denominated financial assets.This exacerbated the sale of the peso and contributed to the rapid 40 percent drop in its value.

Which of the Following Actions by the Mexican Government in December