Natural resource cartels such as OPEC are inherently unstable because their members operate with excess capacity and have an incentive to cheat on their output quotas

Which of the following statements is TRUE?

A) The 1957 Treaty of Rome founded the EU and created a custom union. B) The 1957 Treaty of Rome founded the EU. C) The 1957 Treaty of Rome founded the euro. D) The 1957 Treaty of Rome founded the European Central Bank. E) The 1957 Treaty of Rome founded the Stability and Growth Pact. known as SGP.

Under a flexible exchange rate, an increase in the domestic money supply leads to

A) a devaluation of the domestic currency. B) a revaluation of the domestic currency. C) a depreciation of the domestic currency. D) an appreciation of the domestic currency.