The theory of optimum currency areas predicts that
A) floating exchange rates are most appropriate for areas closely integrated through international trade and factor movements.
B) fixed exchange rates are most appropriate for areas that are loosely integrated through international trade and factor movements.
C) fixed exchange rates are most appropriate for areas closely integrated through international trade and factor movements.
D) floating exchange rates are most appropriate for all countries in Europe.
E) fixed exchange rates are most appropriate for all countries in Europe.
C
You might also like to view...
Suppose the annual growth rate of GDP in Belize is 3.5 percent. In 20 years, GDP in Belize will double
A) 1 time. B) 1.5 times. C) 3.5 times. D) 7 times.
Refer to the above figure. Medicare subsidies have increased the price of medical services to Ps. The quantity demanded of medical services is
A) QM. B) Q0. C) Qd. D) undetermined without more information.