Please can u explain thank u so much. In the early 1990s, Argentina stopped increasing the money supply and fixed the exchange rate of the Argentine…

Please can u explain thank u so much.

In the early 1990s, Argentina stopped increasing the money supply and fixed the exchange rate of the Argentine austral at 10,000 to the dollar. It then renamed the Argentine currency the “peso” and cut off four zeros so that one peso equaled one dollar. Inflation slowed substantially. After this was done, the following observations were made. Please can you Explain why these observations did not surprise economists.

A. Consumer prices—primarily services—rose relative to other goods.

b.

.

 
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