Under the Bretton Woods system, if a country developed a permanent def

QUESTION

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, this would require the:

A. country to import more than it exports.

B. country to make its exports more expensive.

C. International Monetary Fund to agree to a currency devaluation.

D. government to expand monetary supply in the economy.

E. government to undertake activities that led to exchange rate appreciation.

ANSWER

C