Under the Bretton Woods System,when a Country Adopted an Expansionary

question 89

Multiple Choice

Under the Bretton Woods system,when a country adopted an expansionary monetary policy,thereby causing a balance of payments ________,the country would eventually be forced to implement ________ monetary policy.

• A)deficit;expansionary
• B)deficit;contractionary
• C)surplus;expansionary
• D)surplus;contractionary

---

Definitions:

Voluntary Contract

An agreement entered into freely by two or more parties, where each party has the ability to accept or reject the terms of the agreement.

Competent Persons

Individuals who have the necessary ability, knowledge, or qualifications to perform a specific task or duty effectively.

Proportionately Shared

Equitably distributed or allocated among participants according to their respective shares, responsibilities, or contributions.

Limited Partnership

A business structure involving at least one general partner, who manages the business and is liable for debts, and one or more limited partners, whose liability is capped at their investment.