In the 1970s many Latin American countries had overvalued exchange rates. Due to overvalued exchange rates, many countries in Latin America Part 2 A. experienced reduced living standards for the urban working class. B. stimulated the formation of labor-intense manufacturing sectors that readily absorbed workers from agriculture. C. increased the ability of their traditional agricultural exporters to expand their exports. D. had the ability to support Import Substitution policy, due to the ability to import capital goods cheaply