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Answer:
By devaluating the bolivar, the president of Venezuela has increased the number of bolivars needed to buy one dollar.
Explanation:
Devaluation is a form of currency reform that involves writing down the value of a currency with a fixed exchange rate. The opposite of devaluation is revaluation. At a floating exchange rate, a decrease in the value of the currency is called a depreciation and it is not possible to control a depreciation. A devaluation is usually done with the aim of improving the country's current account, ie the net of a country's business with foreign countries. A devaluation benefits exports and hinders imports. People who borrowed money in foreign currency are disadvantaged. As a devaluation makes imported goods more expensive in terms of domestic currency, inflation risks increasing.
The correct answer for question<em> 40</em> is "II, III".
By reducing agricultural interdependence, a government aims to reduce trade with foreign countries for agricultural goods. Valid actions include:
- Create incentives like reduced taxes over income or subsidies in order for local producers to increase the production of a single crop that is essential for the consumption of the country.
- The development of new farming technologies will increase the output of crops per acre, increasing the profitability of local producers.
The correct answer for question <em>41</em> is "Most farmers are engaged in extensive cultivation".
As mentioned in the question, the average American farmer owns relatively large extensions of land. This is a condition that favors extensive farming, as one can maximize the use of its inputs, such as fertilizer and labor in order to become more profitable with the varieties of crops that are produced.