From the 1944 to 1971, the international monetary system is under the so called Bretton Woods System,
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From the 1944 to 1971, the international monetary system is under the so called “Bretton Woods System”, in which U.S. dollar is pegged to gold at $35/oz and all other currencies are pegged to dollar. As a result, gold and dollar are the two most important reserve assets for the central banks. Since gold has a natural scarcity, to satisfy the growing need for reserves, central banks from around the world have the incentive to accumulate dollars. The measures these foreign countries can take to attract dollars include stimulating _____ and _____ interest rates.
A) imports from the US , raising
B) imports from the US, decreasing
C) exports to the US, raising
D) exports to the US, decreasing
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