Which of the Following Is a Problem for Monetary Policy

question 23

Multiple Choice

Which of the following is a problem for monetary policy in a currency union?

• A) Monetary policy will affect the economy with a longer lag than would be the case without the currency union.
• B) A "one size fits all" monetary policy may lead to interest rates being too high for some economies in the union, while being too low for others.
• C) Money supply is more difficult to control in a currency union than in an individual country.
• D) There is more than one central bank.

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Definitions:

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