Well-functioning financial markets promote

One drawback to a single currency is that

A) the exchange rate is more volatile. B) bond markets are larger and therefore harder to control. C) exporters and importers have fewer choices about how they will receive and make payments. D) individual nations cannot use monetary policy to stabilize the economy. E) foreign currency is more expensive.

In the two-sector growth models, endogenous growth arises from

A) increased saving. B) the research sector. C) increased capital. D) the manufacturing sector.