This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: How were exchange rates determined under the gold standard? How did the Bretton Woods system differ ... (Read 154 times)

wrbasek0

  • Hero Member
  • *****
  • Posts: 560
on: Jun 29, 2018
How were exchange rates determined under the gold standard? How did the Bretton Woods system differ from the gold standard?
 
  What will be an ideal response?

Question 2

Suppose you withdraw 1,000 from your savings account and put it under your mattress. Briefly explain how this will affect M1 and M2.
 
  What will be an ideal response?


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

jxjsniuniu

  • Sr. Member
  • ****
  • Posts: 343
Reply #1 on: Jun 29, 2018
Answer to Question 1

Under the gold standard, exchange rates were determined by the relative amounts of gold in each country's currency. Both the gold standard and Bretton Woods systems were fixed exchange rate systems, but people were able to redeem paper currency for gold domestically only under the gold standard.

Answer to Question 2

M2 will not change and M1 will rise by 1,000. When under your mattress, the 1,000 would be counted as currency. Going from a savings account to currency would raise M1, but both are part of M2, so M2 would not change.


wrbasek0

  • Member
  • Posts: 560
Reply 2 on: Jun 29, 2018
Great answer, keep it coming :)

isabelt_18

  • Member
  • Posts: 342
Reply 3 on: Yesterday
Excellent

« previous next »
 

Did you know?

The most dangerous mercury compound, dimethyl mercury, is so toxic that even a few microliters spilled on the skin can cause death. Mercury has been shown to accumulate in higher amounts in the following types of fish than other types: swordfish, shark, mackerel, tilefish, crab, and tuna.

Did you know?

After a vasectomy, it takes about 12 ejaculations to clear out sperm that were already beyond the blocked area.

Did you know?

Adolescents often feel clumsy during puberty because during this time of development, their hands and feet grow faster than their arms and legs do. The body is therefore out of proportion. One out of five adolescents actually experiences growing pains during this period.

Did you know?

The top 10 most important tips that will help you grow old gracefully include (1) quit smoking, (2) keep your weight down, (3) take supplements, (4) skip a meal each day or fast 1 day per week, (5) get a pet, (6) get medical help for chronic pain, (7) walk regularly, (8) reduce arguments, (9) put live plants in your living space, and (10) do some weight training.

Did you know?

A cataract is a clouding of the eyes' natural lens. As we age, some clouding of the lens may occur. The first sign of a cataract is usually blurry vision. Although glasses and other visual aids may at first help a person with cataracts, surgery may become inevitable. Cataract surgery is very successful in restoring vision, and it is the most frequently performed surgery in the United States.

Female genital and reproductive system. Female genital and reproductive system.
Urinary System Urinary System
Time dependence of the rates of a chemical reaction Time dependence of the rates of a chemical reaction
Comparison of Principles of Abstinence-Only and Comprehensive Sex Education in the Public School Sys Comparison of Principles of Abstinence-Only and Comprehensive Sex Education in the Public School Sys
Components of the nervous system. Components of the nervous system.
Conduction system of the heart. Conduction system of the heart.
Video: How to make cDNA Animation

For a complete list of videos, visit our video library