Optimal currency areas should have__ in order to succeed()
A. high labor mobility
B. low labor mobility
C. imperfectly mobile capital
D. few policy externalities
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The currencies most often used in international transactions are frequently called()
A. vehicle currencies
B. seignorage
C. target currencies
D. competitive currencies
If the fiscal authority is focused on maintaining a balance of payments equilibrium, it is said to be pursuing()
A. external balance
B. internal balance
C. payments balance
D. international peace
When economists talk about policy assignment, what are they talking about()
A. who oversees domestic vs. international policy objectives
B. which agency should be directing government policies
C. what exchange rate regime a country should employ
D. homework
The European Union is seen as a less than optimal currency area because()
A. of a lack of labor mobility and fiscal integration
B. of a lack of fiscal integration and capital mobility
C. of disagreements over fiscal policy and trade restrictions
D. of the national identity lost with the euro