Multiple Choice
How was Argentina affected by the Tequila Crisis in Mexico in 1994?
A) The price of tequila rose to levels that made imports of the beverage drop.
B) Because of Mexico's currency crisis and the failure of its peg, Argentina was forced to contract its money supply and raise interest rates to restore investor confidence.
C) Argentina had to lower its interest rates to stimulate its economy.
D) Argentina no longer could maintain its dollar peg.
Correct Answer:
Verified
Correct Answer:
Verified
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