Under the Bretton Woods system,when a country adopted an expansionary monetary policy,thereby causing a balance of payments ________,the country would eventually be forced to implement ________ monetary policy.

Question

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Under the Bretton Woods system, adopting an expansionary monetary policy could lead to a balance of payments deficit. To correct this imbalance, a country would be forced to adopt a contractionary monetary policy to stabilize its currency and balance of payments.

Under the Bretton Woods System,when a Country Adopted an Expansionary