A nation whose labor market is highly integrated with other nations in a currency union is more ______ to join because ______.

Question

Quizplus · Accepted Answer

Labor market integration with other nations in a currency union means that there is already a level of economic and monetary integration, which makes joining the currency union more likely. Additionally, labor market integration allows for easier adjustment to asymmetric demand shocks through the migration of workers, which is a benefit of joining the currency union. Options A and B both suggest reasons why a nation might be unlikely to join a currency union, while option D suggests a potential benefit but not necessarily a reason why a nation would be more likely to join.

A Nation Whose Labor Market Is Highly Integrated with Other