According to Mundell, countries to constitute an optimal currency ...

[futuristic]

According to Mundell, countries to constitute an optimal currency area need to satisfy one of the two conditions. Explain these conditions.
 
  What will be an ideal response?

Question 2

Which of the following represents a dimension of technological progress?
 
  A) larger quantities of output for given quantities of capital and labor
  B) better products
  C) a larger variety of products
  D) new products
  E) all of the above

[Zack0mack0101@yahoo.com]

Answer to Question 1

Mundell argued these countries need to satisfy one of the two conditions: 1 ) the countries have to experience similar shocks, then they would have chosen roughly the same monetary policy; 2 ) Or, if the countries experience different shocks, they must have high factor mobility.

Answer to Question 2

E

[futuristic]

Excellent

[frankwu0507]

Thanks for the timely response, appreciate it