Bretton woods aa aa suppose that after world war ii, the united states and great britain agree to peg their currencies to each other under the bretton woods system at an exchange rate of $2 per pound. suppose american demand for pounds increases, and the equilibrium dollar price of a pound rises to $3 per pound. which of the following actions could the u. s. government use under bretton woods to eliminate the balance-of-payments imbalance at the pegged exchange rate? a. exchange dollars for pounds in order to buy gold from great britain. decrease u. s. income taxes. borrow british pounds from the imf and use the pounds to buy dollars. which of the following is the reason the bretton woods system was officially dissolved in 1971? a. temporary economic changes in some of the member countries deviated equilibrium exchange rates from targeted rates. b. the international monetary fund (imf) refused to continue supervising the exchange-rate practices of member countries c. the u. s. suffered growing balance-of-payments deficits in a fixed exchange rate regime, the value of a currency is pegged to: a. a currency board b. an interest rate standard such as the treasury bill rate in the u. s. c. an anchor currency with either dollarization or currency boards, interest rates must be equal to the reserve currency country's prevailing rates. a. true b. false