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Recall Application 3, "A Downside to the Euro," to Answer

Question 74

Multiple Choice

Recall Application 3, "A Downside to the Euro," to answer the following questions:
-According to the application, how was Greece harmed from being a member of the Euro- zone?


A) By using the euro, investment in Greece was more expensive.
B) By using the euro, Greece could not devalue its currency to solve its financial crisis.
C) By using the euro, Greece would have to allow its currency to appreciate in order to prevent a financial crisis.
D) By using the euro, investors feared Greece could easily pursue expansionary monetary policies.

Correct Answer:

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