Why did the Bretton Woods system ultimately break down?
a. The refusal of OPEC countries to accept payment for oil in gold.
b. The refusal of surplus countries to devalue as required by law.
c. An inability to devalue the U.S. dollar despite chronic payments deficits.
d. An inability to adequately measure balance of payments surpluses and deficits.
c
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A bank with some monopoly power may be able to __________ the rate on its deposits and so __________ its net interest income
A) lower, lower B) lower, raise C) raise, lower D) raise, raise
If a deal looks too good to be true
a. The seller most likely made a mistake b. Be cautious. It probably is too good to be true c. Trust the seller to give you a good deal d. A good deal is a good deal. Go for it.
A year-long drought that destroys most of the summer's crops would be considered a:
A. short-run supply shock. B. long-run demand shock. C. long-run supply shock. D. short-run demand shock.
Refer to the graph above. Which of the following would shift the investment demand curve from ID 2 to ID 1 ?
A. Rising real interest rates
B. Increasing business taxes
C. Lower acquisition cost of capital goods
D. Higher expected rates of return on investment