Author Question: As countries that currently use the euro, what are the two ways that Spain and Greece could reduce ... (Read 118 times)

cabate · **on:** Jun 30, 2018

As countries that currently use the euro, what are the two ways that Spain and Greece could reduce the prices of their exports and of their domestic goods to remain competitive with their trading partners?

What will be an ideal response?

Question 2

Swaps differ from futures and options in all of the following ways EXCEPT:

A) intended to reduce the risk faced by participants.
B) more flexibility.
C) more privacy.
D) less regulation.

macmac · **Reply #1 on:** Jun 30, 2018

Answer to Question 1

1. They could lower inflation rates to below those of their major trading partners.
2. They could abandon the euro and allow their new currencies to depreciate against the euro.

Answer to Question 2

A