In the late 1990s, Brazil decided to reduce the value of its currency, the real, in order to boost exports and help the economy to move out of a recession. Argentina, the main trade competitor of Brazil in various products, was immediately affected by Brazil's decision, since it would:

A. decrease Argentina's imports and decrease Argentina's trade deficit.
B. increase Argentina's exports and decrease Argentina's trade deficit.
C. decrease Argentina's exports and increase Argentina's trade deficit.
D. increase Argentina's imports and decrease Argentina's trade deficit.

Answer: C

Economics

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