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The Main Function of the 1997 Stability and Growth Pact

Question 28

Multiple Choice

The main function of the 1997 Stability and Growth Pact (SGP) was to


A) exclude a highly indebted EMU country
B) enhance cooperation between France and Germany.
C) tighten the fiscal constraints.
D) distribute the Euro banknote among European central banks and to create a timetable for the imposition of financial penalties on countries that fail to correct situations of "excessive" deficits and debt promptly enough.
E) determine specialized penalties for each member nation.

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