The Bretton Woods System Failed in 1971 Due To

question 31

Multiple Choice

The Bretton Woods System failed in 1971 due to:

• A)High rates of inflation in the U.S
• B)Greater mobility of capital across international borders
• C)The desire on the part of participating countries to have an independent monetary policy
• D)All of the reasons given are correct

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Definitions:

Market Characteristics

Features that define a specific market, including the number of buyers and sellers, product differentiation, and level of competition.

Supply Curve

A graphical representation showing the relationship between the price of a good and the quantity of that good that sellers are willing to supply.

Long-Run

A period of time in economics where all factors of production and costs are variable, allowing full adjustment to market changes.

Short-Run

A period of time during which at least one input, such as plant size, cannot be changed; contrasts with the long-run where all inputs are variable.