The agreements that were reached at the Bretton Woods conference in 1944 established a system
A. in which the values of currencies were fixed in terms of a specific number of ounces of gold, which in turn determined their values in international trading.
B. of essentially fixed exchange rates under which each country agreed to intervene in the foreign exchange market when necessary to maintain the agreed-upon value of its currency.
C. of floating exchange rates determined by the supply and demand of one nation's currency relative to the currency of other nations.
D. that prohibited governments from intervening in the foreign exchange markets.
Answer: B
You might also like to view...
Economists use the term ______ to refer to fluctuations in economic activity, such as employment and production
Fill in the blank(s) with correct word
Starting from long-run equilibrium, a large tax cut will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; higher; higher B. expansionary; higher; potential C. recessionary; higher; potential D. recessionary; lower; lower
If the inflation rate increases,
A) the real interest rate rises. B) real GDP growth increases. C) potential GDP increases. D) the nominal interest rate falls. E) the velocity of circulation increases.
Which of the following statements is true of unemployment? a. Cyclical unemployment decreases during recessions and increases during expansions
b. Some unemployment exists even when the economy is healthy and growing. c. Unemployment and inflation are not related. d. People who are willing and able to work but have given up the search for a job are considered unemployed. e. Voluntary unemployment refers to a situation in which people who really do not want to work only pretend to look for jobs.