To try to overcome the free rider problem, the members of EMU signed the
A) stability and growth pact.
B) European solidarity pact.
C) exchange rate mechanism pact.
D) responsibility and growth pact.
E) fiscal stability pact.

Question

Quizplus · Accepted Answer

The Stability and Growth Pact was designed to ensure that countries in the European Monetary Union (EMU) maintain fiscal discipline, thus addressing the free rider problem by setting limits on budget deficits and national debt levels.

To Try to Overcome the Free Rider Problem, the Members