Under the Bretton Woods system,the IMF could encourage deficit countries to pursue contractionary monetary policies that would ________ their currency or eliminate their balance of payment ________.

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Under the Bretton Woods system, the IMF could encourage deficit countries to pursue contractionary monetary policies to strengthen their currency and eliminate their balance of payment deficits. Contractionary policies reduce inflation and increase interest rates, attracting foreign capital and improving the balance of payments.

Under the Bretton Woods System,the IMF Could Encourage Deficit Countries