Question

During a financial crisis in the early 2000s, what did the government of Argentina do?

1) Implemented austerity measures
2) Increased government spending
3) Borrowed money from international organizations
4) Implemented strict capital controls

Answer 1

The government of Argentina implemented austerity measures, borrowed money from international organizations, and implemented strict capital controls during the financial crisis in the early 2000s.

Step-by-step explanation:

In response to the financial crisis in the early 2000s, the government of Argentina implemented austerity measures, with large decreases in government spending and large tax increases, in order to reduce their deficits. This approach aimed to improve their fiscal situation by cutting back on expenses and increasing revenue. Argentina also borrowed money from international organizations to address the crisis and implemented strict capital controls to manage the flow of funds.