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.

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Definitions:

California

A diverse and populous state located on the Pacific coast of the United States, known for its significant economic, cultural, and political influence.

Government Revenue

The total income received by the government from taxes and non-tax sources.

Import Quota

Government-imposed limit on the quantity of a particular good that can be imported into a country.

Trucks

Big vehicles built for the purpose of moving merchandise over highways.