The architects of the Bretton Woods agreement built limited flexibilit

QUESTION

The architects of the Bretton Woods agreement built limited flexibility into the fixed exchange rate system in order to:

A. avoid high unemployment.

B. facilitate competitive currency devaluations.

C. widen balance-of-payments gap between countries.

D. increase money supply and thereby price inflation.

E. avoid balance-of-trade equilibrium between countries.

ANSWER

A