If Canada and the United States adopted a common currency, then:
A) Canada could no longer run an independent monetary policy.
B) Canada's ability to run an independent monetary policy would be enhanced.
C) the ability of the United States to run an independent monetary policy would be enhanced.
D) neither Canada nor the United States could run independent fiscal policies.

Question

Quizplus · Accepted Answer

Adopting a common currency means that the monetary policy would be unified or shared between the two countries, thus neither could independently control aspects like interest rates or money supply, affecting their ability to run an independent monetary policy. Fiscal policy, which involves government spending and taxation, is not directly affected by the currency used and can still be managed independently by each country.

If Canada and the United States Adopted a Common Currency