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After Norway Unilaterally Pegs the Krone to the Euro, Domestic

Question 56

Multiple Choice

After Norway unilaterally pegs the krone to the euro, domestic money market disturbances will


A) no longer affect domestic output despite the continuation of float-rate regime against non-euro currencies.
B) now have major effect on domestic output despite the continuation of float-rate regime against non-euro currencies.
C) have some effect on domestic output despite the continuation of float-rate regime against non-euro currencies.
D) have major effect on domestic employment despite the continuation of float-rate regime against non-euro currencies.
E) no longer affect foreign imports despite the continuation of float-rate regime against non-euro currencies.

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