Will the use of the euro help increase economic growth in countries in the European Union? Will it help individual countries using the euro in times of recession? Explain
What will be an ideal response?
While a common currency makes it easier for buyers and sellers to exchange goods and services across borders, a fixed exchange rate across countries in the European Union prohibits those countries from conducting independent monetary policies. If one country experiences recession, for example, fixed exchange rates will keep that country's currency value from falling, thereby exacerbating the recession. As a result, whether the euro will help to expand opportunities for economic growth will depend on which of these two effects is more significant.
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Adjustable rate mortgages
A) reduce the interest-rate risk for financial institutions. B) benefit homeowners when interest rates rise. C) generally have higher initial interest rates than conventional fixed-rate mortgages. D) allow borrowers to avoid paying interest on portions of their mortgage loans.
All industrialized countries have become "service economies." Which factor helps explain this shift?
a. Trade unionism and failure of the manufacturing sector to grow. b. Information age and labor saving innovation in manufacturing. c. Non availability of industrial labor with required skills. d. Absence of competition in the service sector.
Many experts on the nursing shortage insist that, in addition to higher money wages, other ways will have to be found to make the nursing profession more attractive, including, for example, more respect from physicians and administrators, more flexible schedules, and more secure parking lots. These facts illustrate the concept of
a. exploitation. b. pecuniary principles. c. economic rent. d. nonmonetary attractiveness.
Economic efficiency is indicated by
A. P = MC. B. P = AVC. C. P = MR. D. MR = MC.