A major concern economists have regarding the introduction of a common European currency is the
A) damage it will cause to the international status of the U.S. dollar.
B) fact that it would be a weaker currency than the individual country currencies it replaces.
C) potential social and political problems that may arise should Europe experience an asymmetric shock.
D) likelihood that the currencies it replaces will continue to be used in so-called underground transactions.
E) absence of any preconditions for countries wanting to join the EMU.

Question

Quizplus · Accepted Answer

The introduction of a common European currency could create potential social and political problems should Europe experience an asymmetric shock, where one country experiences an economic downturn while others do not. This could lead to tensions and complications within the Eurozone.

A Major Concern Economists Have Regarding the Introduction of a Common