Briefly describe how the Bretton Woods system operated
What will be an ideal response?
Under the Bretton Woods System of fixed exchange rates, the United States pledged to buy or sell gold at a fixed price of $35 per ounce and the central banks of the member countries pledged to buy and sell their currencies at a fixed rate against the dollar. If a shortage or surplus of a country's currency occurred at the fixed exchange rate (also known as the par exchange rate), the central bank of the member country would buy or sell dollars with their currency to maintain the fixed exchange rate.
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Which of the following is NOT a characteristic of competitive markets?
A) standardized product B) purchases and sales of individual traders are small relative to the total volume traded C) prices adjust quickly D) there are relatively few sellers
During the late 1980s and early 1990s, most of the budget deficits were accounted for by
a. the decline of foreign investment in the United States. b. the downturn in the economy. c. deliberate fiscal policy changes. d. All of the above are correct.