Which of the Following Best Describes Circumstances Surrounding the Breakdown

question 33

Multiple Choice

Which of the following best describes circumstances surrounding the breakdown of the Bretton Woods system?  

• A) The United States was enjoying a persistent trade surplus. 
• B) There was too much dependence on the U.S. dollar because no other country had a stable currency. 
• C) Germany, with its strong currency, refused to defend the U.S. dollar. 
• D) Speculators were betting on the fall of the U.S. dollar.

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Definitions:

Direct Competition

Two or more businesses offering products or services that directly compete against each other.

Currency Fluctuation

Refers to the variations in the value of one currency relative to another, which can impact international trade and investments.

Substitute Products

Goods and services that perform very similar functions and can be used in place of one another.

Recession

A period of economic decline across a significant portion of an economy, lasting for a few months or more.