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When Nations Enter into Currency Unions, Their Fiscal Affairs Continue

Question 44

Multiple Choice

When nations enter into currency unions, their fiscal affairs continue to be separate. The exception to this situation is whenever a confederation of states has a system:


A) whereby monetary policy is decided by consensus rather than centrally.
B) of government subsidies for firms exporting outside the union.
C) of fiscal mechanisms that permits interstate transfers.
D) of common tax policies and regulatory rule.

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