Another benefit from entering a currency union that is not optimal would include:
A) the idea that economies interconnected in a currency union with increased trade also develop a symmetry of demand shocks.
B) the reduction of interdependence and an increase in self-sufficiency.
C) the cessation of disagreement over trade protection.
D) the possibility of increasing the currency area.
Answer: A) the idea that economies interconnected in a currency union with increased trade also develop a symmetry of demand shocks.
You might also like to view...
Alex is hired as a sales agent and receives 10% commission on the sales price. The contract he signed is a
A) fixed-fee contract. B) hire contract. C) contingent contract. D) sharing contract.
Steve is planning to divide his study time between English and calculus. It will take him two hours of study for each extra point in calculus and one hour of study to raise his English score by one point. He should allocate his time so that
a. the marginal utility of an hour spent studying calculus is twice the marginal utility of an hour spent studying English b. the marginal utility of an hour spent studying English is twice the marginal utility of an hour spent studying calculus c. the marginal utility per hour spent studying calculus equals the marginal utility per hour spent on English d. he spends twice as much time on calculus as on English e. he spends twice as much time on English as on calculus