For Ecuador, the Result of Adopting the Dollar as Its

question 118

Multiple Choice

For Ecuador, the result of adopting the dollar as its official currency is that

• A) its government cannot capture revenue (seigniorage) by issuing currency.
• B) there tends to be greater promise of lower interest rates and greater financial stability.
• C) the rate of inflation in Ecuador is tied to that of the United States.
• D) All of these are correct.

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Definitions:

Low Tides

The state of the tide when the water level is at its lowest point, occurring between two high tides in a tidal cycle.

High Tides

Periodic rise and fall of sea levels caused by the gravitational forces exerted by the moon and sun in combination with the rotation of Earth.

Spinning Globe

A representation of the Earth that rotates on an axis, often used as a model to illustrate global geography and rotation.

Moon's Gravity

The gravitational force exerted by the Moon, affecting tides on Earth and the motion of spacecraft and objects on the Moon's surface.