Question

At the end of the Bretton Woods system, what combination of policies would have maintained the...

At the end of the Bretton Woods system, what combination of policies would have maintained the system?

a) expansionary monetary policy in the US and expansionary policy abroad

b) expansionary monetary policy in the US and contractionary policy abroad

c) contractionary monetary policy in the US and expansionary policy abroad

d) contractionary monetary policy in the US and contractionary policy abroad

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Option c

contractionary monetary policy in the US and expansionary policy abroad

At the end of the Bretton Woods system, contractionary monetary policy in the US and expansionary policy abroad would have maintained the system. The Bretton Woods system came into effect after the 1944 Bretton Wood agreement. According to this system, each member country was to tye its currency to gold and keep its external exchange rate within 1 percent. After the Vietnam war prices escalated in the US and the domestic inflation became very high and it became difficult to maintain the fixed exchange rates.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
The Bretton Woods system broke down in the early 1970s for all but one of the...
The Bretton Woods system broke down in the early 1970s for all but one of the following reasons: Question 35 options: deficit countries losing international reserves were not willing to devalue their currencies. surplus countries were not willing to revalue their currencies upwards. surplus countries were not willing to pursue more expansionary policies. the United States had been pursuing an inflationary monetary policy to reduce domestic unemployment.
What was the international monetary system established at the Bretton Woods? What was the major international...
What was the international monetary system established at the Bretton Woods? What was the major international currency? How were nations conducting their international monetary relations in the Bretton Woods system?
Mark all of the true statements below concerning the Bretton Woods system. A. John Maynard Keynes...
Mark all of the true statements below concerning the Bretton Woods system. A. John Maynard Keynes was one of the architects of the Bretton Woods system. B. The International Monetary Fund maintains a private golf course for its employees, called the Bretton Woods golf course. (Note: this is 100% true. Your tax dollars at work.) C. The system ended when President Johnson, facing economic pressures due to the Vietnam war, suspended the US dollar's convertibility into gold. D. The US...
3. What is the Bretton Woods System? When and how did the system collapse? 4. What...
3. What is the Bretton Woods System? When and how did the system collapse? 4. What was the role of the U.S. dollar in the gold standard exchange and the Bretton Woods System?
What is the Bretton Woods system? And please briefly discuss reasons why this system eventually collapsed.
What is the Bretton Woods system? And please briefly discuss reasons why this system eventually collapsed.
1. There were fixed exchange rates with: a. the gold standard. b. the Bretton Woods System....
1. There were fixed exchange rates with: a. the gold standard. b. the Bretton Woods System. c. Unmanaged free floating rates. d. All of the above. e. Only A and B of the above. 2. Capital flows are automatically restricted under: a. the gold standard. b. the Bretton Woods System. c. Unmanaged free floating rates. d. Managed rates. e. All of the above. 3. The so-called “law of one price” will hold as long as: a. transportation costs are relatively...
Which combination of policies would be the most contractionary? Select one: a. a decrease in government...
Which combination of policies would be the most contractionary? Select one: a. a decrease in government spending and an increase in taxes b. an increase in government spending and a decrease in taxes c. a decrease in both government spending and taxes d. an increase in both government spending and taxes
Which combination of policies would be the most contractionary? Select one: a. a decrease in government...
Which combination of policies would be the most contractionary? Select one: a. a decrease in government spending and an increase in taxes b. an increase in government spending and a decrease in taxes c. a decrease in both government spending and taxes d. an increase in both government spending and taxes
Which combination of policies would be the most contractionary? Select one: a. a decrease in government...
Which combination of policies would be the most contractionary? Select one: a. a decrease in government spending and an increase in taxes b. an increase in government spending and a decrease in taxes c. a decrease in both government spending and taxes d. an increase in both government spending and taxes
Under the Bretton-Woods adjustable pegged exchange-rate system, member countries were permitted to correct persistent and sizable...
Under the Bretton-Woods adjustable pegged exchange-rate system, member countries were permitted to correct persistent and sizable current account deficits by a) officially revaluing their currencies. b) officially devaluing their currencies. c) allowing their currencies to appreciate in the free market. d) allowing their currencies to depreciate in the free market.
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT