One of the Preconditions for Entry into the Euro Was

question 52

Multiple Choice

One of the preconditions for entry into the euro was that member countries should:

• A) ensure that government budget deficits were around 15-20 per cent of GDP.
• B) devalue their currencies to optimally use the real exchange rate .
• C) have low levels of inflation and low interest rates.
• D) ensure that overall debt to GDP ratio was 75 per cent.

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Definitions:

Manufacturers

Entities or individuals that use raw materials, parts, and components to produce finished goods through various processes, machinery, and operations.

Unexpected Changes

Unexpected changes refer to unforeseen events or shifts in the marketplace, economies, or natural environment that can significantly impact businesses, economies, and societies.

Price Indexes

Statistical measures that track changes in the price level of a basket of goods and services over a period of time.

Nominal GDP

The total market value of all final goods and services produced within a country in a given period, measured using current prices without adjustment for inflation.