« previous next »

Author Question: How and why did Europe set up its single currency? What will be an ideal ... (Read 74 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?

A recent study has found that following a diet rich in berries may slow down the aging process of the brain. This diet apparently helps to keep dopamine levels much higher than are seen in normal individuals who do not eat berries as a regular part of their diet as they enter their later years.

Did you know?

Chronic necrotizing aspergillosis has a slowly progressive process that, unlike invasive aspergillosis, does not spread to other organ systems or the blood vessels. It most often affects middle-aged and elderly individuals, spreading to surrounding tissue in the lungs. The disease often does not respond to conventionally successful treatments, and requires individualized therapies in order to keep it from becoming life-threatening.

Did you know?

Women are two-thirds more likely than men to develop irritable bowel syndrome. This may be attributable to hormonal changes related to their menstrual cycles.

Did you know?

In ancient Rome, many of the richer people in the population had lead-induced gout. The reason for this is unclear. Lead poisoning has also been linked to madness.

Did you know?

About 3.2 billion people, nearly half the world population, are at risk for malaria. In 2015, there are about 214 million malaria cases and an estimated 438,000 malaria deaths.

To search for the Native American family would be fruitless. There are rural, urban, single-parent, ... To search for the Native American family would be fruitless. There are rural, urban, single-parent, ...
A single overhead camshaft engine with a timing belt that also rotates the water pump. A single overhead camshaft engine with a timing belt that also rotates the water pump.
Growth Accounting for Europe, A.D. 500–1700 Growth Accounting for Europe, A.D. 500–1700
Single-serve pods of infant formula Single-serve pods of infant formula
Testcross of a single character Testcross of a single character
Summary of DNA synthesis at a single replication fork Summary of DNA synthesis at a single replication fork
Video: How to make cDNA Animation

For a complete list of videos, visit our video library