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Why Did the Bretton Woods System Break Down? Do You

question 11

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Why did the Bretton Woods system break down? Do you think that that breakdown and the subsequent adoption of much greater flexibility in the value of the dollar have been "good" from the standpoint of the United States? Why or why not?


Definitions:

Risk-Averse

The tendency to prefer avoiding losses over achieving equivalent gains.

Risk-Seeking

A behavioral trait of preferring or choosing options that have potentially higher gains albeit with higher risks.

Framing

The way information or situations are presented or structured to influence perception and understanding.

Framing

The process of structuring or presenting information and issues in a way that influences how they are interpreted and understood.

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