stephanie5207
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Read this news report about a planned devaluation of the bolivar, the currency of Venezuela.

The president of Venezuela announced that the country would be devaluating the bolivar for the fifth time in nine years. The official rate is falling from 4.3 bolivars to the dollar, to 6.3, a 32% devaluation. By increasing the bolivar value of exports of oil to the US and other nations, the government hopes to alleviate a budget crisis caused by its increasing reliance on borrowing to meet spending obligations.

In response to the announcement, the people of Venezuela lined up today to buy televisions, electronics, and airline tickets in order to protect themselves from projected price increases.

By devaluating the bolivar, the president of Venezuela has

followed the law of supply and demand.
allowed the exchange rate to remain unchanged.
increased the number of bolivars needed to buy one dollar.
decreased the number of bolivars needed to buy one dollar.

Respuesta :

Parrain

In devaluing the value of the Bolivar, the President would have increased the number of bolivars needed to buy one dollar.

Devaluing a currency

  • Means making it weaker against other currencies.
  • Makes goods that are priced in that currency cheaper to other countries.

When the currency was devalued against the dollar, it means that more Bolivar would be needed to buy American dollars. For instance, before the devaluation, 4.3 Bolivars could buy an American dollar but now only 6.3 Bolivars can do so.

In conclusion, option c is correct.

Find out more on currency devaluation at https://brainly.com/question/16051120.

Answer:

c

Explanation:

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