What action did President Nixon take to enable devaluation of the dollar during the increase in U.S. inflation in 1971?
A) The IMF member countries would adopt the gold standard to fix exchange rates.
B) The United States would no longer support the World Bank.
C) A new 15 percent tax would be charged on U.S. exports.
D) The dollar would no longer be convertible into gold.
E) German deutsche marks would be the new reference currency.

Question

Quizplus · Accepted Answer

President Nixon ended the dollar's convertibility into gold, effectively abandoning the Bretton Woods system and allowing the dollar to float, which led to its devaluation.

What Action Did President Nixon Take to Enable Devaluation of the Dollar