In effect, during the period immediately following World War II, ...

[elizabeth18]

In effect, during the period immediately following World War II, the world was on a(n):
 a. gold standard.
  b. flexible-exchange-rate standard.
  c. U.S. dollar standard.
  d. exchange-rate standard dictated by Germany
  e. pegged-exchange rate standard.

Question 2

At one time, it was believed that the way for a nation to prosper was to export as much as possible while importing as little as possible. More money would flow into a country than out of a country. Is this really a sound economic strategy? What is the relationship between exports and imports?

[blakcmamba]

Answer to Question 1

c

Answer to Question 2

This is a bad strategy. When few goods are imported, foreign countries will not have the currency necessary to buy a country's exports and the volume of trade must therefore decline. For international trade to take place at all, a country must both import and export. There cannot be one without the other. Most importantly, trade allows for added consumption which is the ultimate goal.