There is some evidence from the experience of the EMU that a country's degree of trade integration with its EMU partners _________ as a result of joining EMU and so can be said to be _________.
A) decreases, exogenous
B) decreases, endogenous
C) increases, exogenous
D) increases, endogenous

Question

Quizplus · Accepted Answer

Research has shown that a country's degree of trade integration with its EMU partners increases as a result of joining EMU, which suggests that this integration is endogenous (i.e. influenced by internal factors such as policy decisions and economic incentives within the EMU).

There Is Some Evidence from the Experience of the EMU