the president of venezuela announced that the country would be devaluating the bolivar for the fifth time in…

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 bolivar to the us dollar, to 6.3, a 32% devaluation. by increasing the bolivar value of exports of oil to the united states 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 to protect themselves from projected price increases. what is the expected effect of the devaluation among venezuelas population? rising inflation price deflation increased imports declining inflation

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 bolivar to the us dollar, to 6.3, a 32% devaluation. by increasing the bolivar value of exports of oil to the united states 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 to protect themselves from projected price increases. what is the expected effect of the devaluation among venezuelas population? rising inflation price deflation increased imports declining inflation

Answer

Brief Explanations:

Devaluation typically makes a country's currency worth less. This often leads to higher prices for imported goods and can fuel inflation as seen by Venezuelans' rush to buy goods to avoid projected price - increases.

Answer:

rising inflation