Business
Business, 21.04.2020 21:42, melkumathurin

Bretton Woods Aa Aa Suppose that after World War II, the United States and Germany agree to peg their currencies to each other under the Bretton Woods system at an exchange rate of $2 per mark. Suppose American demand for marks decreases, and the equilibrium dollar price of a mark falls to $1 per mark. Which of the following actions could the U. S. government use under Bretton Woods to help eliminate the balance-of-payments imbalance at the pegged exchange rate? O Use dollars to buy German marks in the foreign-exchange market O Use monetary policy to increase real interest rates in the United States. O Borrow German marks from the IMF and use the marks to buy dollars.

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Bretton Woods Aa Aa Suppose that after World War II, the United States and Germany agree to peg thei...

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