Which of the following best describes circumstances surrounding the breakdown of the Bretton Woods system?
a. The United States was enjoying a persistent trade surplus.
b. There was too much dependence on the dollar because no other country had a stable currency.
c. Germany, with its strong currency, refused to defend the dollar.
d. Speculators were betting on the fall of the dollar.
e. All the other nations basically wished their currencies to appreciate, which was impossible under the system.
D
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Selling a good abroad below the price charged in the home market, or at a price below the cost of production is called
A) dumping. B) import substitution. C) a quota. D) a tariff.
Orchards provide services to beekeepers because the bees use the pollen to make honey. This is an example of
A) a positive externality, and too many orchards exist in society. B) a positive externality, and too few orchards exist in society. C) a negative externality, and too many orchards exist in society. D) a negative externality, and too few orchards exist in society.