If all the countries used one common currency, we could expect that exports and imports would
A) decrease because international trade would be less needed
B) decrease because each country would be producing more output
C) increase because exchange rate uncertainty would be eliminated
D) increase because many small countries would benefit most
E) not change because trading of goods is independent of currency

Question

Quizplus · Accepted Answer

Eliminating exchange rate uncertainty by using a common currency would reduce the costs and risks associated with international trade, likely increasing the volume of exports and imports.

If All the Countries Used One Common Currency, We Could