Question

Which of the following statements is not correct about the effects of the​ euro? A. The...

Which of the following statements is not correct about the effects of the​ euro?

A. The euro helped economic growth in euro zone countries by making it easier for consumers and firms to buy and sell across borders.

B. The euro is used as currency in​ Germany, France, and Italy.

C. The euro increased the ability of participating countries to run independent monetary policies.

D. The euro reduced costs and increase competition.

Homework Answers

Answer #1

1. C. The euro increased the ability of participating countries to run independent monetary policies.

2. The countries run their independent fiscal policies but not monetary policies contrary to what is mentioned in the question.

3. Due to this not-giving-up on the authority of their policies, this is seen as a drawback for the membership of EU and adoption of euro means losing ability for them to print their own currency.

4. Independent countries sets their own fiscal policy which precisely affects the value of euro.

5. But the other options are very true as euro reduced border costs and increased competition as mentioned in option D and helped economic growth as mentioned in option A and those 3 countries mentioned in option B use euro as their currency.

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