In 2002, the euro replaced the currencies of most of the members of the European Union. The euro has:
A. increased transaction costs among EU countries.
B. increased macroeconomic independency among EU countries.
C. increased monetary policy flexibility for the individual EU countries.
D. reduced monetary policy flexibility for the individual EU countries.
Answer: D
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Retained earnings are always sufficient to finance a firm's rapid expansion in a high-growth economy
Indicate whether the statement is true or false
When the required reserve ratio is changed,
a. the money multiplier is changed but the amount of excess reserves in the banking system is unchanged. b. the money multiplier is unchanged but the amount of excess reserves in the banking system is changed. c. the size of the money multiplier and the amount of excess reserves change in the opposite direction from the required reserve ratio. d. the size of the money multiplier and the amount of excess reserves change in the same direction as the required reserve ratio. e. neither the money multiplier nor the amount of excess reserves change.
Which of the following would lead to a positive supply shock?
a. An increase in the money supply. b. A decrease in taxes. c. The discovery of a more efficient production method. d. An increase in consumer confidence. e. An increase in energy prices.
An action taken by an informed party to reveal private information to an uninformed party is called