After Norway Unilaterally Pegs the Krone to the Euro, Domestic

question 47

Multiple Choice

After Norway unilaterally pegs the krone to the euro, domestic money market disturbances will

• A) no longer affect domestic output despite the continuation of float-rate regime against non-euro currencies.
• B) now have major effect on domestic output despite the continuation of float-rate regime against non-euro currencies.
• C) have some effect on domestic output despite the continuation of float-rate regime against non-euro currencies.
• D) have major effect on domestic employment despite the continuation of float-rate regime against non-euro currencies.
• E) no longer affect foreign imports despite the continuation of float-rate regime against non-euro currencies.

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