If a currency union lowers the cost of trade and therefore promotes increased trade, the Euro-optimists believe that:
A) a currency union at some point will no longer be necessary.
B) at some point the OCA criteria will be satisfied.
C) the benefits of having an independent monetary policy will outweigh the benefits from the currency union.
D) the currency union may never be beneficial to an individual nation, but it does reduce political tension in large regions.
Correct Answer:
Verified
Q62: The earliest beginning of the European Union
Q63: The basics of the ERM in the
Q64: In spite of less-than-optimal currency area criteria
Q65: Some studies find that trade in the
Q66: The Maastricht Treaty of 1991 provided for
Q68: In 1979, under the ERM, the member
Q69: The collapse of the Bretton Woods system
Q70: Another benefit from entering a currency union
Q71: The new European Economic Community, after it
Q72: The Single European Act passed in 1987
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