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.
Answer: C
You might also like to view...
Everything else remaining unchanged, what is likely to happen to the credit supply curve of households if:
a. there is a decrease in the real interest rate? b. households expect a recession in near future? What will be an ideal response?
Many forms of seafood (lobster, crab legs, etc.) are consumed by dipping the meat in melted garlic butter. If someone suggested that it would therefore be equally appealing to drink melted butter after having eaten garlic and unseasoned seafood, you would know they had fallen victim to which of the following?
A. the fallacy that correlation is the same as causation B. a logical tautology C. the fallacy of composition D. none of the options are correct