Which of the following was an announcement made by U.S.President Nixon to enable the devaluation of the dollar during the increase in inflation in 1971 in the United States?
A) The IMF member countries would adopt the gold standard to fix exchange rates.
B) The United States would no longer support the World Bank.
C) A new 10 percent tax would be charged on U.S. exports.
D) The dollar was no longer convertible into gold.
E) German deutsche marks would be the new reference currency.

Question

Quizplus · Accepted Answer

President Nixon announced in 1971 that the United States would no longer allow foreign governments to exchange dollars for gold, which effectively ended the convertibility of the dollar into gold. This decision, known as the Nixon Shock, allowed the U.S. to devalue the dollar and increase exports to combat inflation.

Which of the Following Was an Announcement Made by U