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The Fixed Exchange Rate System Put in Place After World

Question 23

Multiple Choice

The fixed exchange rate system put in place after World War II was abandoned in favor of the current floating rate system because:


A) the dollar's tie to gold at $35 per ounce became unrealistic.
B) it became impossible to keep certain exchange rates constant as the economic status of nations changed subsequent to World War II.
C) Neither of the above
D) Both of the above

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