Which of the Following Statements Is False

question 6

Multiple Choice

Which of the following statements is false?

• A)The Bretton Woods Accord established a fixed exchange rate system among the major industrialized countries in 1944.
• B)Over half of U.S. currency and over 70 percent of $100 bills are held abroad.
• C)The price of oil from the Middle East is quoted, bought, and sold in euros. This was a blow to the U.S. dollar which used to be the currency in which oil was quoted, bought, and sold.
• D)The euro is now used as international reserves.

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Definitions:

Income Rises

An increase in the amount of money received by households or individuals over a period of time.

Level Of Consumption

The total amount of goods and services consumed by households over a certain period.

MPC

Marginal Propensity to Consume, which is the proportion of an increase in income that gets spent on consumption.

MPS

The marginal propensity to save, which is the fraction of an increase in income that is saved rather than spent.