Since the abandonment of the Bretton Woods system,balance of payments considerations have become ________ important,and exchange rate considerations ________ important in the conduct of monetary policy.

Question

Quizplus · Accepted Answer

The Bretton Woods system had fixed exchange rates, meaning that countries had to adjust their balance of payments to maintain the exchange rate. However, since the abandonment of this system, exchange rate fluctuations have become more important in the conduct of monetary policy. As a result, balance of payments considerations have become less important. Thus, D is the correct answer.

Since the Abandonment of the Bretton Woods System,balance of Payments