With a common currency such as the euro,
A)trade barriers between countries using the currency are increased.
B)individual countries using the currency are no longer able to run independent monetary policies.
C)the prices of goods across countries using the currency must always be the same,regardless of consumer preferences for goods across countries.
D)individual countries using the currency are no longer able to run independent fiscal policies.

Question

Quizplus · Accepted Answer

A common currency, such as the euro, means that the participating countries share a single monetary policy. This means that individual countries are no longer able to run independent monetary policies, including setting interest rates or adapting to economic shocks with their own currency.

With a Common Currency Such as the Euro