Figure 30-10
-Refer to Figure 30-10. Under the Bretton Woods System of exchange rates, if the par exchange rate was $2 per pound in the figure above, and equilibrium persisted at $3, then this was evidence of ________ and the IMF would allow a ________ in the exchange rate.

Question

Figure 30-10 
-Refer to Figure 30-10. Under the Bretton Woods System of exchange rates, if the par exchange rate was $2 per pound in the figure above, and equilibrium persisted at $3, then this was evidence of ________ and the IMF would allow a ________ in the exchange rate.

Quizplus · Accepted Answer

Under the Bretton Woods System, a persistent disequilibrium in the exchange rate was evidence of fundamental disequilibrium. The IMF would then allow a revaluation of the currency.

Figure 30-10 -Refer to Figure 30-10. Under the Bretton Woods System of Woods