Until August 1971, industrialized countries around the world maintained a fixed exchange rate of their currencies with the U.S. dollar, which was linked to gold. The gold standardized system was called the Bretton Woods Fixed Exchange Rate System. This system collapsed in 1971, and since then, the dollar has not been linked to gold. Based on your understanding of the international monetary system, complete the following statements: • A exchange rate is the quoted price for a unit of foreign currency to be delivered within a very short period of time. • The government does not set a determine the currency's value. exchange rate, which means that supply and demand in the market • When American customers import more from Europe than they export to Europe, the euro relative to the dollar.

Until August 1971, industrialized countries around the world maintained a fixed exchange rate of their currencies with the U.S. dollar, which was linked to gold. The gold standardized system was called the Bretton Woods Fixed Exchange Rate System. This system collapsed in 1971, and since then, the dollar has not been linked to gold. Based on your understanding of the international monetary system, complete the following statements: • A exchange rate is the quoted price for a unit of foreign currency to be delivered within a very short period of time. • The government does not set a determine the currency's value. exchange rate, which means that supply and demand in the market • When American customers import more from Europe than they export to Europe, the euro relative to the dollar.

Principles of Economics (MindTap Course List)

8th Edition

ISBN:9781305585126

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter32: A Macroeconomic Theory Of The Open Economy

Section: Chapter Questions

Problem 3PA

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