The Bretton Woods System of 1944-1973 Was Based Upon

question 80

Multiple Choice

The Bretton Woods System of 1944-1973 was based upon

• A) the international silver standard
• B) the international gold standard
• C) freely fluctuating exchange rates
• D) relatively stable exchange rates

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Definitions:

Open Economy

An economy that engages in international trade, allowing goods, services, and capital to move freely across its borders.

National Saving

National saving is the sum of private and public savings in an economy, essentially the portion of national income that is not spent on consumption or government expenditure.

Consumption

The use of goods and services by households. It includes spending on durable goods, nondurable goods, and services.

Loanable Funds

The market where savers supply funds for loans to borrowers, often illustrated by the supply and demand for loans.