The figure below shows the demand (D) and supply (S) curves of cocoa in the U.S.Figure 21.4

-In effect, during the period immediately following World War II, the world was on a(n):
A)gold standard.
B)flexible-exchange-rate standard.
C)U.S. dollar standard.
D)exchange-rate standard dictated by Germany
E)pegged-exchange rate standard.

Question

The figure below shows the demand (D) and supply (S) curves of cocoa in the U.S.Figure 21.4
 
-In effect, during the period immediately following World War II, the world was on a(n):
A)gold standard. 
B)flexible-exchange-rate standard. 
C)U.S. dollar standard. 
D)exchange-rate standard dictated by Germany 
E)pegged-exchange rate standard.

Quizplus · Accepted Answer

The U.S. dollar was the dominant currency after World War II and the world operated under a U.S. dollar standard. This is evident from the fact that the demand and supply curves for cocoa in the U.S. are shown, indicating that the U.S. had a significant impact on the global demand and supply for cocoa during this time period. The other options (gold standard, flexible-exchange-rate standard, exchange-rate standard dictated by Germany, pegged-exchange rate standard) do not accurately describe the monetary system that was in place immediately following World War II.

The Figure Below Shows the Demand (D) and Supply (S)