Argentina has faced high inflation during the last years. This makes people to demand more US dollars as a way to make t

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answerhappygod
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Argentina has faced high inflation during the last years. This makes people to demand more US dollars as a way to make t

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Argentina has faced high inflation during the last years. Thismakes people to demand more US dollars as a way to make theirpayments. Given the increase in the demanded quantity of US dollarsand the fixed exchange rate regime they had, more dollars weredemanded than what they were supplied in this economy. To closethis gap, “In 2011, the government, led by Cristina Fernández deKirchner, restricted the purchase of dollars. The governmenttightened these restrictions between 2011 and 2015 — people couldbuy fewer dollars, could not use “saving” as a justification, andhad to pay higher taxes when they used credit and debit cardsabroad.”
1)Propose two other measures to decrease the demand for USdollars.
2)Represent on a graph how restricting the demand for US dollarscould help make the restrictions unnecesary.
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