The idea that nations in a currency union will have fewer trade barriers or other frictions may have the dual effect of:
A) increased integration and more risk of debt default.
B) increased political harmony and less risk of asymmetric shocks.
C) economies of scale and specialization as well as higher risk of asymmetric shocks.
D) economic growth and an increase in environmental degradation
Ans: C) economies of scale and specialization as well as higher risk of asymmetric shocks.\
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