Which one of the following is not a characteristic that reduces the cost of a single currency?
A) Synchronized economic cycles in the countries of the common currency area.
B) A high degree of capital mobility among the countries of the common currency area.
C) A low degree of labour mobility among the countries of the common currency area.
D) A high degree of real wage flexibility.

Question

Quizplus · Accepted Answer

A low degree of labour mobility among the countries of the common currency area would not reduce the cost of a single currency as it can lead to imbalances in the labor market and increase unemployment rates in some countries. The other options, such as synchronized economic cycles, capital mobility, and real wage flexibility, can help reduce costs associated with a single currency.

Which One of the Following Is Not a Characteristic That