A main disadvantage of the European Monetary Union is that:
A) Each member country loses the use of monetary policy as to tool to combat recession
B) There is a high degree of labor mobility among the member countries
C) Prices are highly flexible in response to changing economic conditions
D) Wages are highly flexible in response to changing economic conditions

Question

Quizplus · Accepted Answer

One of the main disadvantages of the European Monetary Union is that member countries no longer have control over their own monetary policy. This means they cannot independently adjust interest rates or manipulate their currency to combat recession or inflation. This loss of control can limit a country's ability to respond to economic challenges and can create disparities among member economies.

A Main Disadvantage of the European Monetary Union Is That