The efficiency gain from a fixed exchange rate with the euro is greater when trade between a country like Norway and the euro zone is extensive. This is because a fixed exchange rate reduces uncertainty and costs related to currency conversion, benefiting countries with high levels of trade.

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The Efficiency

Question 34

Multiple Choice

The efficiency

A) gain from a fixed exchange rate with the euro is smaller when trade between say, Norway and the euro zone, is extensive than when it is small.
B) gain from a fixed exchange rate with euro is greater when trade between say, Norway and the euro zone, is extensive than when it is small.
C) loss from a fixed exchange rate with the euro is smaller when trade between say, Norway and the euro zone, is extensive than when it is small.
D) gain from a fixed exchange rate with euro is the same as when trade between say, Norway and the euro zone, is extensive than when it is small.
E) gain from a fixed exchange rate with euro is the same as when trade between say, Norway and the euro zone, is small than when it is small.

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