The Architects of the Bretton Woods Agreement Built Limited Flexibility

question 89

Multiple Choice

The architects of the Bretton Woods agreement built limited flexibility into the fixed exchange rate system in order to

• A) avoid high unemployment.
• B) facilitate competitive currency devaluations.
• C) widen balance-of-payments gap between countries.
• D) increase money supply and thereby price inflation.
• E) avoid balance-of-trade equilibrium between countries.

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Definitions:

Composition

A term referring to the arrangement or makeup of something's parts or elements, often used in contexts ranging from music to writing, and to the chemical makeup of substances.

Maladaptation

Behavior or traits that are counterproductive to an individual's well-being or survival in a particular environment.

Discipline

The practice of training people to obey rules or a code of behavior, using punishment to correct disobedience.

Inspecting

The process of examining something closely in order to gain information.