According to the Theory of Optimum Currency Areas,a Currency Area

question 213

Multiple Choice

According to the theory of optimum currency areas,a currency area has the least chance for success when:

• A) Countries of the currency area have differing business cycles
• B) Workers have a high degree of mobility across borders of the currency area
• C) Prices and wages can be adjusted in response to economic disturbances
• D) A single monetary policy affects all member countries in the same manner

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Definitions:

Amygdala

A region of the brain involved in experiencing emotions, especially fear and the processing of emotional memories.

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The region of the brain responsible for processing visual information.

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A process by which the brain develops and modifies itself through ordinary experiences, such as sensory stimulation and movement, which are expected in the environment.

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A vision impairment present at birth where the lens of the eye is cloudy or opaque, affecting clarity of vision.