The introduction of a single currency or "Euro" in 1999 ________ the likelihood that inflation rates will converge in countries that join the Euro.
A)increases
B)decreases
C)has no effect on
D)may increase or decrease

Question

Quizplus · Accepted Answer

The introduction of a single currency or "Euro" creates a common monetary policy, eliminating fluctuations in exchange rates and reducing transaction costs. This, in turn, increases the likelihood that inflation rates will converge in countries that join the Euro.

The Introduction of a Single Currency or "Euro" in 1999