Which of the following was an argument IN FAVOR of Britain's adopting the euro?
I. Using the same currency as many other European countries would expand trade and increase productivity.
II. Using the euro would increase the effectiveness of monetary policy.

Question

Quizplus · Accepted Answer

Using the same currency as many other European countries could potentially expand trade and increase productivity by reducing transaction costs and exchange rate uncertainty. However, adopting the euro might not necessarily increase the effectiveness of monetary policy, as it would mean ceding control over monetary policy to the European Central Bank.

Which of the Following Was an Argument IN FAVOR of Britain's