When two countries choose to use a new currency, they are A) ...

[moongchi]

When two countries choose to use a new currency, they are
 
  A) participating in a monetary union.
  B) dollarizing.
  C) forming an optimal currency area.
  D) increasing their monetary autonomy.

Question 2

The theory of optimal currency areas argues that social welfare is ________ when countries participate in ________.
 
  A) increased; a monetary union
  B) decreased; a monetary union
  C) increased; a managed float system
  D) decreased; policy coordination

[mjenn52]

Answer to Question 1

A

Answer to Question 2

A

[moongchi]

Thank you

[mjenn52]

No problemo