What brought about the end of the Bretton Woods Agreement?
What will be an ideal response?
Under the Bretton Woods Agreement, the dollar was tied to gold and the exchange rates of all other currencies were fixed relative to the dollar. Countries had to maintain their exchange rate within one percent of the officially determined value. They would use dollars or other official reserves to maintain the exchange rate. The fixed exchange rate could be changed if there was a fundamental disequilibrium. Beginning in the late 1960s, the dollar was under pressure and the old IMF system ended when the dollar was devalued in 1971, followed by a floating exchange rate system in 1973.
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The amount of government expenditures on a project or program should continue to increase for as long as the marginal benefits exceed the marginal costs
a. True b. False Indicate whether the statement is true or false
For which of the following individuals would the opportunity cost of going to college be highest?
a. a promising young mathematician who will command a high salary once she earns her college degree b. a student with average grades who has never held a job c. a famous, highly-paid actor who wants to take time away from show business to finish college and earn a degree d. a student who is the best player on his college basketball team, but who lacks the skills necessary to play professional basketball