The decision to form a currency union is similar to the decision to peg; however, the currency union requires:
A) a lower level of commitment and therefore requires a lower net benefit.
B) a higher level of commitment and therefore requires a higher net benefit.
C) more political integration and an agreement to limit trade.
D) the loss of political autonomy and is therefore riskier.
Ans: B) a higher level of commitment and therefore requires a higher net benefit.
Economics
You might also like to view...
Describe the channels through which an open market purchase of bonds by the Fed affects output in a closed economy
What will be an ideal response?
Economics
In a pure capitalist economy, "what to produce" is determined by
A. a central planning board. B. the price mechanism. C. the issuing of government coupons used along with money to purchase goods. D. None of these choices are true.
Economics