Under the Bretton Woods System, If a Country Developed a Permanent

question 59

Multiple Choice

Under the Bretton Woods system, if a country developed a permanent deficit in its balance of trade that could not be corrected by domestic policy, this would require the:

• A)country to import more than it exports.
• B)country to make its exports more expensive.
• C)International Monetary Fund to agree to a currency devaluation.
• D)government to expand monetary supply in the economy.
• E)government to undertake activities that led to exchange rate appreciation.

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