The Collapse of the Fixed Exchange Rate System Has Been

question 36

Multiple Choice

The collapse of the fixed exchange rate system has been traced to the

• A)U.S.macroeconomic policy package of 1965-1968.
• B)inflexibility of the fixed exchange rate system that led to high unemployment.
• C)Marshall Plan,under which the United States lent money heavily to European nations.
• D)failure of the International Monetary Fund to impose monetary discipline.
• E)increased taxes in the United States to finance its welfare programs.

---

Definitions:

Lone Dissenter

An individual who opposes or stands apart from the opinions or beliefs of a majority or group.

Robber's Cave Study

An influential social psychology experiment by Muzafer Sherif that demonstrated how intergroup conflict can arise from competition over resources and be mitigated through cooperative tasks.

Scarce Resources

Resources that are limited in availability and are not enough to fulfill the wants and needs of the population.

Group Boundaries

Defined or perceived limits that specify who belongs to a particular social group or category, distinguishing members from non-members.