Recall the Application about how the collapse of the housing boom and the worldwide recession of 2007 led to problems for some countries in the Euro-zone to answer the following question(s). When the euro was launched in 1999, the vision of its founders was to use the monetary union to further unify Europe economically and politically. They envisioned a large economic market, comparable to the United States with integrated goods and financial markets. They believed that by moving to a single currency with agreements on a number of fiscal rules that they could achieve economic stability and growth.
-Recall the Application. Unlike the Euro-zone, the United States does not just have a single currency, but also has a ________ that provides transfers to areas in economic distress.

Question

Quizplus · Accepted Answer

The United States has a unified fiscal system that provides transfers, such as federal aid, to areas in economic distress. This is not present in the Euro-zone, which only has a single currency but lacks a unified fiscal system. Option A is incorrect because the Euro-zone also has a single central bank. Option B is incorrect because it is not a relevant comparison to the United States' fiscal system. Option D is incorrect because there is no federally funded emergency account in the United States.

Recall the Application About How the Collapse of the Housing