read this news report about a planned devaluation of the bolivar, the currency of venezuela.\nthe president…

read this news report about a planned devaluation of the bolivar, the currency of venezuela.\nthe 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.\nin 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.\nby devaluating the bolivar, the president of venezuela has\n○ followed the law of supply and demand.\n○ allowed the exchange rate to remain unchanged.\n○ increased the number of bolivars needed to buy one dollar.\n○ decreased the number of bolivars needed to buy one dollar.

read this news report about a planned devaluation of the bolivar, the currency of venezuela.\nthe 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.\nin 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.\nby devaluating the bolivar, the president of venezuela has\n○ followed the law of supply and demand.\n○ allowed the exchange rate to remain unchanged.\n○ increased the number of bolivars needed to buy one dollar.\n○ decreased the number of bolivars needed to buy one dollar.

Answer

Answer:

C. increased the number of bolivars needed to buy one dollar.

Brief Explanations:

  • Devaluation of a currency (bolivar here) means that more units of the domestic currency (bolivars) are required to purchase one unit of a foreign currency (dollar).
  • The official rate changed from 4.3 bolivars to 1 dollar to 6.3 bolivars to 1 dollar. So, now more bolivars are needed to buy one dollar, which matches option C.
  • Option A: Devaluation is a policy decision, not just following supply - demand in a free - floating sense here. Option B: The exchange rate changed (from 4.3 to 6.3), so it did not remain unchanged. Option D: The change is an increase in bolivars per dollar, not a decrease.