Answered: In Brazil, a country that underwent a…

In Brazil, a country that underwent a rapid inflationbefore 1994, many transactions were conducted in dollars rather than in reals, the domestic currency. Why?

Economics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506725

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Chapter8: Economic Fluctuations, Unemployment, And Inflation

Section: Chapter Questions

Problem 12CQ

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In Brazil, a country that underwent a rapid inflation
before 1994, many transactions were conducted in dollars rather than in reals, the domestic currency. Why?

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