QAPolitology › Venezuelans started buying items immediately because of their fear of:
Q

Venezuelans started buying items immediately because of their fear of:

A. rising inflation

B. price deflation

C. declining inflation

D. increased imports

A

Answer: A. rising inflation

Since the start of the Hugo Chavez-led Bolivian revolution, Venezuela’s economy began a process of severe economic inflation and stagnation. With this, Venezuela’s annual inflation rate rose to 100% from 50% by the end of 2015. After just two years, that percentage rose to 1,370%, an extremely alarming amount.

This upward trend in percentage inflation led to Venezuelans buying and hoarding products. There was no change in wages and the prices of goods changed every day. The rate of purchases skyrocketed and the Venezuelan economy was in absolute jeopardy. Presently, the inflation rate of Venezuela’s economy is estimated at 10,000% annually.

3 weeks ago
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