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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