According to Oatley,Bretton Woods II Arguably Played a Key Role

question 34

Multiple Choice

According to Oatley,Bretton Woods II arguably played a key role in the development of the global financial crisis of 2008-2009 because

• A) the demand for US government debt instruments drove up interest rates.
• B) high interest rates burst the real estate bubbles in US and Europe.
• C) the demand for US government debt instruments drove down interest rates.
• D) low interest rates drove down the values of commercial real estate in US and Europe.
• E) it undermined the Asian savings glut and US economic sovereignty.

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Definitions:

WPA

The Works Progress Administration, an American New Deal agency, providing jobs and income to the unemployed during the Great Depression by carrying out public works projects.

Americans

Citizens or natives of the United States of America, a diverse population with a wide range of cultural, ethnic, and racial backgrounds.

1935-1942

A period marked by significant global events including the latter years of the Great Depression, the build-up to World War II, and early years of the conflict.

Social Security Act

A law enacted in 1935 in the United States to create a system of transfer payments in which younger, working people support older, retired people.