The Bretton Woods system:
A. committed the participating countries to a system of floating exchange rates.
B. was set up as a result of the U.S. balance of payments crisis in the early 1970s.
C. committed the participating countries to a system of fixed exchange rates.
D. established the rules of the game of the gold standard.
Answer: C
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Is the poverty rate the lowest among Hispanic households, black households, or white households?
What will be an ideal response?
The mechanism behind the inflation insulation provided by a floating exchange rate is
A) Purchasing Power Parity. B) a fixed AA curve. C) market speculation. D) tight monetary policy. E) symmetry.
Which of the following does not reflect a positive rate of time preference?
a. People are willing to pay high prices to see new movies at first-run theaters. b. A bank pays interest on savings accounts. c. Ed puts money in his mattress for a rainy day. d. Dry cleaners that provide faster service can charge more. e. A college freshman parties all semester, then stays awake studying for 50 straight hours during final exam week.
In this graph, expanding output to 5 million units causes a ______.
a. deadweight loss of area ECD
b. deadweight loss of area AEB
c. consumer surplus of area ECD
d. producer surplus of area AEB