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, the IMF would agree to a
A)currency devaluation.
B)increase in employment.
C)increase in output.
D)increase in interest rates.
E)increased tariffs

Question

Quizplus · Accepted Answer

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, the IMF would agree to a currency devaluation. This would make the country's exports cheaper and imports more expensive, helping to restore balance in the trade.

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