Questão número 638607

Read the text below in order to answer questions 21 to 23:

A QUICK GLANCE AT BRAZIL'S ECONOMY

In January 1999, the real, Brazil's monetary unit, was devalued by approximately 50% against the U.S. dollar, causing many to speculate on the country's economic fate as it moved toward the year 2000. Confidence in the economy waned and predictions of high inflation and deep recession ensued.

However, several factors helped turn things around throughout 1999. Brazil entered into a funding agreement with the International Monetary Fund (IMF) for $41 billion; President Fernando Henrique Cardoso's administration implemented strong fiscal contraction measures, which generated higher-than-expected revenue collection; and the tradable goods sector expanded.

By the end of 1999 there were clear indications of a re-stabilisation of the Brazilian economy and an increase in the overall level of confidence in Brazilian recovery. Consumer inflation levelled off at approximately 9%, the exchange rate for the real stabilized at R1.789/$1, and the primary fiscal balance rose from 0% in 1998 to a 3.1% gross domestic product (GDP) surplus (thus meeting one of the targets of the IMF programme).

According to the text,

• A.

  the Brazilian currency must have been devalued in January 1999

• B.

  high inflation and deep recession have generated higher levels of confidence

• C.

  Brazil might soon sign an agreement with the International Monetary Fund

• D.

  during 1999 a set of factors contributed to changing Brazil's economic scenario

• E.

  mild fiscal contraction measures were implemented by Brazil's president