In Argentina, when the exchange rate was floated in 2002, all of the following took place, EXCEPT a sharp:
A) decline in the exchange rate of the peso.
B) increase in the level of poverty.
C) increase in inflation.
D) decline in unemployment rates.

Question

Quizplus · Accepted Answer

The sharp decline in the exchange rate of the peso led to an increase in inflation and a rise in the level of poverty. However, unemployment rates did not decline, they actually increased as a result of the economic crisis. Therefore, the correct choice is D, because it is the only option that did not take place.

In Argentina, When the Exchange Rate Was Floated in 2002