Fiscal And Monetary Policy(Economics > Monetary Union ) Questions and Answers
Explanation:-
Answer: Option D. -> The interest rate may be higher than is appropriate for economic conditions in some countries while it’s lower than is appropriate in some others moNO EXPLANATION IS AVAILABLE FOR THIS QUESTION!
Explanation:-
Answer: Option C. -> government of the member countries of the currency union may run large budget deficits and so impose costs on other countries by pushing up interest rNO EXPLANATION IS AVAILABLE FOR THIS QUESTION!
Explanation:-
Answer: Option B. -> real wages fall rapidly in a recession and the economy moves quickly back to long run equilibrium so limiting the duration of the recession even whenNO EXPLANATION IS AVAILABLE FOR THIS QUESTION!
Question 9. If two countries A and B are member of a currency union and there is a shift in consumer preferences away from the goods of country A and towards those of country B than which one of the following would help to offset the effect of the resulting changes in aggregate demand in A and B on inflation and unemployment in the tow countries ?
Explanation:-
Answer: Option A. -> A high degree of labour mobility between the tow countriesNO EXPLANATION IS AVAILABLE FOR THIS QUESTION!
Explanation:-
Answer: Option B. -> The eurozone has a lower degree of labour mobility than the USA and labour law is much more restrictive in the erozone than in the USA On these measurNO EXPLANATION IS AVAILABLE FOR THIS QUESTION!