In the Early 2000s, Ecuador Replaced Its Currency, the Sucre

question 59

Multiple Choice

In the early 2000s, Ecuador replaced its currency, the sucre, with the U.S.dollar as its official currency to solve its inflation problem.As long as Ecuador maintains the U.S.dollar as its official currency, what will happen to the monetary policy of Ecuador?

• A)it will become both more powerful and more flexible
• B)it will become more powerful but less flexible
• C)it will become less powerful but more flexible
• D)it effectively will cease to exist