Under the Bretton Woods system, if a country developed a permanent deficit in its balance of trade that could not be corrected by domestic policy, this would require the:
A)country to import more than it exports.
B)country to make its exports more expensive.
C)International Monetary Fund to agree to a currency devaluation.
D)government to expand monetary supply in the economy.
E)government to undertake activities that led to exchange rate appreciation.

Question

Quizplus · Accepted Answer

Under the Bretton Woods system, if a country developed a permanent deficit in its balance of trade (importing more than it exported) that could not be corrected by domestic policy, this would require the International Monetary Fund to agree to a currency devaluation.

Under the Bretton Woods System, If a Country Developed a Permanent