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Shortly After It Was Established, the Eurozone Found That It

Question 118

Multiple Choice

Shortly after it was established, the Eurozone found that it needed greater power to monitor and enforce discipline upon its members. In particular, which one of the convergence criteria needed closer monitoring?


A) no devaluation of a country's exchange rate
B) an inflation rate no more than 1.5 percentage points higher than that in the three member countries with the lowest rates of inflation
C) a government deficit of no more than 3% of GDP
D) a long-term interest rate no more than 2 percentage points higher than in the three member countries with the lowest rates of inflation

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