Question

The IMF agreement included a "scarce currency clause", which permitted countries to discriminate in their trade policy against a country with a persistent BP surplus. This clause permitted the European countries to set up a European Payments Union (EPU), under which the European countries could liberalize trade among themselves without extending the liberalization measures to the United States.

a. largely correct
b. seriously misleading

Answer 1

The IMF agreement included a "scarce currency clause" that allowed countries to discriminate in trade policy against a country with a persistent balance of payments surplus, which permitted the European countries to establish the European Payments Union (EPU) for liberalized trade among themselves.

Step-by-step explanation:

The IMF agreement included a "scarce currency clause" that allowed countries to discriminate in their trade policy against a country with a persistent balance of payments surplus. This clause allowed European countries to establish the European Payments Union (EPU), which enabled liberalized trade among themselves without extending the same measures to the United States. This statement is a. largely correct.