Under the Bretton Woods System,Germany Did Not Want to Revalue

question 231

Multiple Choice

Under the Bretton Woods System,Germany did not want to revalue its currency because the revaluation would

• A) make imports more expensive to Germans.
• B) make exported goods less expensive.
• C) rapidly increase the money supply, causing inflation.
• D) cause a recession.

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Definitions:

Direct Labor

Work done by employees that can be directly traced to the production of goods or services, as opposed to indirect labor involved in support activities.

Direct Materials

The raw materials that are directly traceable to the manufacturing of a product and are an integral part of the finished product.

Depreciation

The systematic allocation of the cost of a tangible asset over its useful life, reflecting the asset's consumption or decline in value.

Period Cost

Expenses that are not directly tied to the production process and are expensed in the period in which they are incurred.