What brought about the end of the Bretton Woods Agreement?
What will be an ideal response?
Under the Bretton Woods Agreement, the dollar was tied to gold and the exchange rates of all other currencies were fixed relative to the dollar. Countries had to maintain their exchange rate within one percent of the officially determined value. They would use dollars or other official reserves to maintain the exchange rate. The fixed exchange rate could be changed if there was a fundamental disequilibrium. Beginning in the late 1960s, the dollar was under pressure and the old IMF system ended when the dollar was devalued in 1971, followed by a floating exchange rate system in 1973.
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At a fair carnival roulette wheel, a player can either win $10, $30, or $80 . Assuming that the wheel is fair, what is the expected value of the play?
a. $20 b. $40 c. $60 d. $80
In the above figure, the opportunity cost of moving from producing 75 guitars and 25 ukuleles to producing 25 guitars and 75 ukuleles is
A. 25 guitars. B. 25 ukuleles. C. 75 ukuleles. D. 50 guitars.
The optimal pollution level is found where the marginal social benefit of polluting equals the marginal social cost of polluting.
Answer the following statement true (T) or false (F)
Starting from long-run equilibrium, a large increase in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; higher; potential B. recessionary; higher; potential C. recessionary; lower; lower D. expansionary; higher; higher