Because the Value of the Euro Is Determined by Factors

question 196

Multiple Choice

Because the value of the euro is determined by factors that affect the entire eurozone, during the recession of 2007-2009, individual countries using the euro

• A)were unable to have their exchange rates depreciate.
• B)were more insulated from unemployment increases than most countries.
• C)experienced a greater increase in exports than did most countries.
• D)were able to use expansionary monetary policy to lessen the impact of the recession.
• E)saw the cost of imports rise more than other countries.

---

Definitions:

NPV

An evaluation method used to assess the profitability of an investment by calculating the difference between its current cash inflows and outflows, discounted to their present values.

IRR

Internal Rate of Return represents a financial measure for assessing the potential profitability of investments.

Marginal Cost

The cost added by producing one additional unit of a product or service.