7. Economic costs and benefits of a common currency Identify whether each attribute in the following table is an advantage or disadvantage of sharing a currency across country boundaries. Attribute Advantage Disadvantage Greater risk of macroeconomic shocks Elimination of exchange fluctuations Greater certainty for investors Dependent monetary policy Lower protectionism Which of the following are reasons the European Union is considered a suboptimal currency area? Check all that apply. A single monetary policy that is equally effective across borders No legal or cultural barriers to labor mobility across borders Limited use of fiscal policy Low economic efficiency gains

7. Economic costs and benefits of a common currency Identify whether each attribute in the following table is an advantage or disadvantage of sharing a currency across country boundaries. Attribute Advantage Disadvantage Greater risk of macroeconomic shocks Elimination of exchange fluctuations Greater certainty for investors Dependent monetary policy Lower protectionism Which of the following are reasons the European Union is considered a suboptimal currency area? Check all that apply. A single monetary policy that is equally effective across borders No legal or cultural barriers to labor mobility across borders Limited use of fiscal policy Low economic efficiency gains

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

7. Economic costs and benefits of a common currency
Identify whether each attribute in the following table is an advantage or disadvantage of sharing a currency across country boundaries.
Attribute
Advantage
Disadvantage
Greater risk of macroeconomic shocks
Elimination of exchange fluctuations
Greater certainty for investors
Dependent monetary policy
Lower protectionism
Which of the following are reasons the European Union is considered a suboptimal v currency area? Check all that apply.
A single monetary policy that is equally effective across borders
O No legal or cultural barriers to labor mobility across borders
O Limited use of fiscal policy
O Low economic efficiency gains

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