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Social Science Clinic => Economics => Topic started by: cabate on May 25, 2020

Title: Which of the following is NOT usually given as a reason for an EU country joining the euro?
Post by: cabate on May 25, 2020

Question 1

Which of the following is NOT usually given as a reason for an EU country joining the euro?
◦ Lower inflation
◦ Lower interest rates
◦ Elimination of exchange rate uncertainty
◦ Elimination of asymmetric shocks

Question 2

Which of the following is NOT usually given as a reason for an EU country joining the euro?
◦ Increased scope for using interest rates to control the economy
◦ Increased inward investment
◦ Removal of exchange rate uncertainty when trading with member states
◦ Increased competition leading to efficiency gains

Title: Which of the following is NOT usually given as a reason for an EU country joining the euro?
Post by: yotaSR5 on May 25, 2020

Answer 1

Elimination of asymmetric shocks

Answer 2

Increased scope for using interest rates to control the economy