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In a Fixed Exchange Rate System Such as the Bretton

Question 65

Multiple Choice

In a fixed exchange rate system such as the Bretton Woods system,a country would be forced to "devalue" its currency if persistent balance of payments ________ cause it to ________ foreign exchange reserves.


A) deficits,amass dangerous amounts of
B) deficits,run dangerously short of
C) surpluses,amass dangerous amounts of
D) surpluses,run dangerously short of

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