Recall the Application About How the 2008 Financial Crisis Led

question 26

Multiple Choice

Recall the Application about how the 2008 financial crisis led to problems for some countries in the
Euro-zone to answer the following question(s) . When the euro was launched, countries with typically
weaker currencies or fiscal discipline benefitted from the discipline of one currency and a strong, single
central bank, the European Central Bank. The stability created by the euro with the strong influence of
Germany–recognized for its monetary and fiscal prudence–benefitted the traditionally weaker countries.
The financial crisis of 2008 exposed the downside to a single currency to a collection of countries whose
economies and political cultures differ sharply.
-According to this Application, countries in the Euro-zone reaped the most benefits from using a single currency and from having all monetary policy conducted by the European Central Bank

• A)after the recession began in 2007.
• B)following the financial crisis of 2008.
• C)during the investment boom which preceded the start of the recession in 2007.
• D)both before and during the recession which began in 2007.

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Definitions:

Duopolists

Refers to two companies or entities that dominate or control an entire market for a particular product or service, shaping prices, supply, and competition.

Monopolist

A monopolist is an entity or firm that has exclusive control over a market for a particular good or service, enabling it to adjust prices without direct competition.

Collude

To cooperate with others, often in secret and unlawfully, in order to deceive or gain an unfair advantage.

Output

The quantity of goods or services produced by a firm, industry, or economic system in a given period.