Why was the Bretton Woods System a compromise?
A) Countries agreed to go back on a gold standard if the United States forgave their war debts.
B) Countries agreed to go on a gold standard if the U.S.dollar was depreciated before the exchange rates were set.
C) The system provided for periodic adjustments of the price of the U.S.dollar while European countries kept their currencies pegged to a gold standard.
D) The system combined freely floating exchange rates with the creation of the International Monetary Fund to avoid currency crises.
E) The system combined a fixed exchange rate with the flexibility of exchange rate changes during crises.
Correct Answer:
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