To Keep from Running Out of International Reserves Under the Bretton

question 82

Multiple Choice

To keep from running out of international reserves under the Bretton Woods system,a country had to implement ________ monetary policy to ________ its currency.

• A)expansionary;strengthen
• B)expansionary;weaken
• C)contractionary;strengthen
• D)contractionary;weaken

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Definitions:

Contingency Theory

Contingency Theory is a behavioral theory that suggests the effectiveness of leadership or decision-making strategies is contingent upon the context and situation.

Maximization Theory

A theory suggesting that individuals seek to maximize expected utility in decision-making scenarios, often considered in economics and psychology.

Guthrie

Edwin Ray Guthrie was a psychologist known for his associationist theories of learning, emphasizing the contiguity principle.

Hull

A reference to Clark L. Hull, an influential psychologist known for his work on drive theory and behaviorism.