The theory of optimal currency areas concludes that for a currency area to have the best chance of success
A) workers in the affected country must be able to move freely to other countries
B) prices and wages are flexible
C) countries should have similar business cycles and economic structures
D) all of the above

Question

Quizplus · Accepted Answer

The theory of optimal currency areas states that for a currency area to have the best chance of success, workers should be able to move freely between countries, prices and wages should be flexible, and countries should have similar business cycles and economic structures. Therefore, the correct choice is D, all of the above.

The Theory of Optimal Currency Areas Concludes That for a Currency