In 1999, following the failure of a $40 billion IMF stabilization plan, Brazil
A) was forced to revalue the Real.
B) experienced an economic boom.
C) was forced to devalue the Real.
D) saw its currency become overvalued.
E) received another loan from the IMF worth $86 billion.

Question

Quizplus · Accepted Answer

Following the failure of the IMF stabilization plan in 1999, Brazil was forced to devalue its currency, the Real. This was done in order to make Brazilian exports more competitive in the global market and to make imports more expensive, thus increasing demand for locally-produced goods.

In 1999, Following the Failure of a $40 Billion IMF