The Bretton Woods System Broke Down in the Early 1970s

question 39

Multiple Choice

The Bretton Woods system broke down in the early 1970s for all but one of the following reasons:

• A) deficit countries losing international reserves were not willing to devalue their currencies.
• B) surplus countries were not willing to revalue their currencies upwards.
• C) surplus countries were not willing to pursue more expansionary policies.
• D) the United States had been pursuing an inflationary monetary policy to reduce domestic unemployment.

---

Definitions:

Ruling Class

refers to the social class that holds the majority of political power and wealth in a society, often making decisions that affect the structure of the community.

Material Class

A grouping of individuals based on their economic position in society, often determined by their access to resources and wealth.

Conflict Theorists

refer to sociologists who emphasize the role of power and coercion in producing social order.

Power

The power to shape or control the conduct of individuals and the flow of occurrences.