A(n)_________________ Allows an Optimum Currency Area to Be More Likely

question 17

Multiple Choice

A(n) _________________ allows an optimum currency area to be more likely to experience greater price stability.

• A)permanently flexible exchange rate
• B)permanently fixed exchange rate
• C)managed peg system
• D)currency board

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Definitions:

Marginal Social Benefit

The extra benefit that society receives from consuming an additional unit of a good or service.

Production Process

The sequence of operations or steps taken to produce a good or deliver a service.

Market-Determined Quantity

Refers to the quantity of a good or service that is established through the interaction of supply and demand within a market.

Marginal Social Benefit

The additional benefit that society gains from the production or consumption of one more unit of a good or service.