« previous next »

Author Question: How and why did Europe set up its single currency? What will be an ideal ... (Read 65 times)

notis

  • Hero Member
  • *****
  • Posts: 596
on: Jun 30, 2018
How and why did Europe set up its single currency?
 
  What will be an ideal response?

Question 2

Under flexible exchange rate, the response of an economy to a temporary fall in foreign demand for its exports is
 
  A) the currency appreciates, and output falls.
  B) the currency depreciates, and output falls.
  C) the currency depreciates, and output increases.
  D) the currency depreciates, and output remains constant.
  E) the currency appreciates, and output increases.


lorealeza

  • Sr. Member
  • ****
  • Posts: 345
Reply #1 on: Jun 30, 2018
Answer to Question 1

The why part is because large fluctuations in the exchange rates among the European countries disturbed trade. Also, one of the main reasons was to design a way to prevent future world war. The how part of the question is related to the collapse of Bretton Woods and the European Currency reform of 1969-1978. The Werner Report of 1971 establishes three-phase program to lead to the EMU.

Answer to Question 2

B


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

If you could remove all of your skin, it would weigh up to 5 pounds.

Did you know?

The first documented use of surgical anesthesia in the United States was in Connecticut in 1844.

Did you know?

Signs and symptoms that may signify an eye tumor include general blurred vision, bulging eye(s), double vision, a sensation of a foreign body in the eye(s), iris defects, limited ability to move the eyelid(s), limited ability to move the eye(s), pain or discomfort in or around the eyes or eyelids, red or pink eyes, white or cloud spots on the eye(s), colored spots on the eyelid(s), swelling around the eyes, swollen eyelid(s), and general vision loss.

Did you know?

Women are 50% to 75% more likely than men to experience an adverse drug reaction.

Did you know?

Eating carrots will improve your eyesight. Carrots are high in vitamin A (retinol), which is essential for good vision. It can also be found in milk, cheese, egg yolks, and liver.

The yellow-winged darter, Sympetrum flaveolum, is a dragonfly found in Europe and mid and Northern C The yellow-winged darter, Sympetrum flaveolum, is a dragonfly found in Europe and mid and Northern C
Line analysis of Gustave Caillebotte, Place de l'Europe on a Rainy Day. Line analysis of Gustave Caillebotte, Place de l'Europe on a Rainy Day.
What are examples of ideal forms? What are examples of ideal forms?
Single-cell circulation model Single-cell circulation model
Comparison of a single-stranded RNA and a double-stranded DNA with their corresponding nucleobases. Comparison of a single-stranded RNA and a double-stranded DNA with their corresponding nucleobases.
The RecA strand exchange reaction as shown from single-molecule studies The RecA strand exchange reaction as shown from single-molecule studies
Video: Hierarchical Sequencing Method - Sequence Tagged Sites

For a complete list of videos, visit our video library