Up to 1957,the U

question 32

Multiple Choice

Up to 1957,the U.S.deficits were small and the United States settled most of them in dollars.Nations with surplus were willing to accept dollars for what reason?

• A)The U.S.stood ready to exchange dollars for gold at the fixed price of $35 an ounce
• B)Dollars could be used as an international currency in bilateral transactions with US only
• C)Dollar deposits earned no interest
• D)US was going to devalue their currency

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Definitions:

Decreased Supply

A reduction in the amount of a good or service that is available for purchase in the market.

Equilibrium Price

The price point at which the supply of a good matches demand, leading to a stable market condition where there is no shortage or surplus.

Excess Supply

a situation where the quantity of a good or service supplied in a market exceeds the quantity demanded at the current price, leading to downward pressure on the price.

Property Rights

Legal rights to possess, use, and dispose of assets including real estate, intellectual property, and tangible goods.