The Bretton Woods system was expected to be more stable than the gold standard because
A) the world supply of gold had increased greatly by the time the Bretton Woods system was established.
B) large trade deficits and surpluses would be unlikely to occur under the Bretton Woods system.
C) fewer countries were involved in the Bretton Woods system than had been involved in the gold standard.
D) the IMF was set up to be a lender of last resort.
D
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Refer to Figure 7-2. The market equilibrium price is
A) $60. B) $50. C) $40. D) < $40.
Karl can produce either 10 tons of oranges or 5 tons of apples in a year, while Adam can produce either 5 tons of oranges or 10 tons of apples. If the exchange rate between apples and oranges in international markets is 1 ton of oranges per 3 tons of apples: a. Karl and Adam will not trade apples and oranges with one another, since both will specialize in and export oranges to other
countries. b. Karl and Adam will not trade apples and oranges with one another, since both will specialize in and export apples to other countries. c. Karl and Adam will trade apples and oranges with one another. d. Karl and Adam will not specialize or engage in international trade.
The BEA is the
A. Bureau of Educational Administration. B. Bureau of Educational Analysis. C. Bureau of Economic Alliances. D. Bureau of Economic Analysis.
A ________ line is a perfectly price elastic demand curve.
A. positively sloped B. vertical C. negatively sloped D. horizontal