Which of the following is true?
A) The Bretton Woods Accord established a system of flexible exchange rates, with the U.S. dollar (backed by gold) functioning as the official reserve currency.
B) Under the Bretton Woods Accord, if the trade deficit of a country other than the United States. increased, ceteris paribus, there was upward pressure on that country's exchange rate.
C) Revaluation is likely to reduce net exports and have a negative impact on employment.
D) Other things equal, if U.S. incomes rise, there will likely be an increase in U.S. demand for foreign goods, services, and securities, and thus an increase in the demand for dollars.
Correct Answer:
Verified
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