The Costs to a Country That Dollarizes Include Each of the Following

question 120

Multiple Choice

The costs to a country that dollarizes include each of the following, except:

• A)Slower integration into world markets
• B)Adopting the monetary policy of the country whose currency is being used
• C)The central bank no longer has the ability to be the lender of last resort
• D)The loss of revenue from printing currency

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Definitions:

Slope

In mathematics, the measure of the steepness or incline of a line, often calculated as the ratio of the vertical change to the horizontal change between two points on the line.

Isocost

A line representing all combinations of inputs that have the same total cost.

Capital

Financial assets or the financial value of assets, such as cash or goods, used to generate income.

Isoquant

A curve on a graph representing combinations of inputs that result in the production of the same quantity of output, used in the analysis of production function and input optimization.