Some economists argue that monetary union will not work as well in Europe as it does in the United States for all of the following reasons except:
A) labor is not as mobile in Europe as it is in the United States.
B) there is no strong central government that can use fiscal policy in Europe as there is in the United States.
C) there is no common language in Europe as there is in the United States.
D) there is no European central bank as there is in the United States.

Question

Quizplus · Accepted Answer

The European Central Bank (ECB) exists as the central bank for the eurozone, the group of EU nations that have adopted the euro as their currency. This makes choice D incorrect because it states a condition that is not true, as the ECB plays a similar role in Europe to the Federal Reserve in the United States.

Some Economists Argue That Monetary Union Will Not Work as Well