Question

A climbing current account deficit and an increasingly strong dollar prompted the US to initiate what international agreement in November 1985?

ABrussels Agreement

BLouvre Accord

CPlaza Accord

DInternational Convention on the Harmonization of Frontier Controls of Goods

Select from the options above.

Correct Option: 3  

Explanation:
Plaza Accord
The Plaza Accord between the governments of France, West Germany, Japan, the US, and the UK was designed to devalue US currency against the Japanese and German currencies, and protect or promote GDP growth in their countries. The Louvre Accord was signed in 1987 to stop the US currency's resulting fall.