4. Bretton Woods Suppose that after World War II, the United States and France agree to peg their currencies to each other under the Bretton Woods system at an exchange rate of $1.00 per franc. Suppose American demand for francs increases, and the equilibrium dollar price of a franc rises to $2.00 per franc. Which of the following actions could the U.S. government use under Bretton Woods to help eliminate the balance-of-payments imbalance at the pegged exchange rate? O Decrease U.S. income taxes Exchange dollars for francs in order to buy gold from France Borrow French francs from the IMF and use the francs to buy dollars Which of the following is the reason the Bretton Woods system was officially dissolved in 1971? Temporary economic changes in some of the member countries deviated equilibrium exchange rates from targeted rates. O The U.S. suffered growing balance-of-payments deficits. O The International Monetary Fund (IMF) refused to continue supervising the exchange rate practices of member countries. True or False: With either dollarization or currency boards, interest rates must be equal to the reserve currency country's prevailing rates. O True O False