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Under the Bretton Woods Accord, If a Country Other Than

Question 13

Multiple Choice

Under the Bretton Woods Accord, if a country other than the U.S. ran a trade deficit or experienced a capital outflow, there was


A) upward pressure on the exchange rate and the foreign central bank had to purchase its own currency with dollars.
B) upward pressure on the exchange rate and the foreign central bank had to purchase dollars with its own currency.
C) downward pressure on the exchange rate and the foreign central bank had to purchase dollars with its own currency.
D) downward pressure on the exchange rate and the foreign central bank had to purchase its own currency with dollars.

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