One reason that Iceland recovered from the financial crisis which began in 2007 more quickly than did countries like Greece,Spain,and Italy is that Iceland does not use the euro,and the value of its currency was able to ________ versus the euro,which increased its ________.

Question

Quizplus · Accepted Answer

Iceland's currency, the krona, was able to decline in value compared to the euro, making Icelandic exports more competitive and attractive to buyers. This helped boost Iceland's economy and aided in its recovery from the financial crisis. However, a decline in currency value can also make imports more expensive, which is why option B is not the correct choice. Option C and D suggest a rise in the value of the krona, which would actually make Icelandic exports more expensive and less competitive, hindering the country's recovery.

One Reason That Iceland Recovered from the Financial Crisis Which