78. Under the U.S. macroeconomic policy package of 1965-1968, President Lyndon Johnson
backed an increase in U.S. government spending that was financed by an increase in the money
supply. This resulted in _____.
79. In 1971, U.S. trade figures showed that for the first time since 1945, the United States
was importing more than it was exporting. This set off massive purchases of _____ in the foreign
market by speculators.
80. Which of the following was an announcement made by U.S. President Nixon to enable the
devaluation of the dollar during the increase in inflation in 1971 in the United States?
81. Which of the following was the weakness of the Bretton Woods system?
82. In January 1976, the _____ revised the International Monetary Fund’s Articles of
Agreement to reflect the new reality of floating exchange rates.
83. Which of the following was abandoned as per the Jamaica agreement of 1976?
84. Which of the following is a main element of the Jamaica agreement of 1976?
85. Which of the following statements is true about the changes in the world monetary
system since March 1973?
86. Which of the following is one of the reasons for the rapid rise in the value of the dollar
between 1980 and 1985 despite a large trade deficit?
87. The fall in the value of the U.S. dollar between 1985 and 1988 was caused by:
88. Under the Plaza Accord of 1985, the Group of Five major industrial countries concluded
that it would be desirable if:
89. According to the _____ of 1987, the Group of Five major industrial nations agreed that
exchange rates had been realigned sufficiently and pledged to support the stability of exchange
rates around their current levels by intervening in the foreign exchange markets when necessary
to buy and sell currency.
90. Which of the following explains the rise of the dollar against most major currencies in the
late 1990s, even though the United States was still running a significant balance–of-payments
deficit?
91. From mid-2008 through early 2009, the value of the dollar moderately increased against
major currencies, despite the fact that the American economy was suffering from a serious
financial crisis. Which of the following was a reason for this phenomenon?
92. The frequency of government intervention in the foreign exchange market explains why
the current system is sometimes thought of as a(n) _____.
93. A _____ refers to a system under which some currencies are allowed to float freely, but
the majority are either managed by government intervention or pegged to another currency.
94. Which of the following is a characteristic of the floating exchange rate regime?
95. Which of the following is an argument for a fixed exchange rate system?
96. Which of the following is true of monetary contraction in a fixed exchange rate system?
97. 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: