Which of the following is the MOST accurate? A) U.S. ...

[MGLQZ]

Which of the following is the MOST accurate?
 
  A) U.S. macroeconomic policies in the late 1960s helped cause the breakdown of the Bretton Woods system by early 1973.
  B) U.S. macroeconomic policies in the late 1970s helped cause the breakdown of the Bretton Woods system by early 1983.
  C) U.S. macroeconomic policies in the late 1980s helped cause the breakdown of the Bretton Woods system by early 1993.
  D) U.S. macroeconomic policies in the late 1950s helped cause the breakdown of the Bretton Woods system by early 1963.
  E) U.S. macroeconomic policies in the late 1960s delayed the breakdown of the Bretton Woods system to early 1973.

Question 2

Developing countries should delay opening the capital account until the domestic financial system is strong enough to withstand the sometimes violent ebb and flow of world capital. Discuss.
 
  What will be an ideal response?

[paavo]

Answer to Question 1

A

Answer to Question 2

Probably true. The issue is related to the theory of second best and the proper sequence of reform measures. Of course, students may argue against such step-by-step measures.

[MGLQZ]

Excellent

[nyrave]

TYSM