Suppose that under the Bretton Woods system, the dollar is pegged to gold at a rate of

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Suppose that under the Bretton Woods system, the dollar is pegged to gold at a rate of $35 per ounce and the pound sterling is pegged to the dollar at a rate of $2 = £1. If the dollar is devalued against gold and the pegged rate is changed to $40 per ounce, what does this imply for the exchange value of the pound in terms of dollars?
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Economics Today

ISBN: 978-0132554619

16th edition

Authors: Roger LeRoy Miller

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