Choose the letter of the diagram in Figure 36.2 that represents the shift in the foreign exchange market for dollars given the following situation, ceteris paribus: The Japanese remove some tariffs on American goods.

Which item would probably have inelastic demand for a student?

(A) Sneakers (B) Ball point pen (C) School bus pass (D) Mouse pad

Under the initial Bretton Woods system,

a. foreign currencies could be converted into U.S. dollars, which could be redeemed for gold at a rate determined by supply and demand b. foreign currencies could be converted into U.S. dollars, which could be redeemed for gold at a rate of $35 per ounce c. foreign currencies could be converted into gold at a rate determined by supply and demand d. foreign currencies could be converted into gold at a rate of $35 per ounce e. gold was the international medium of exchange