By Stabilizing Their Exchange Rates to Join the Eurozone, the Baltic

question 45

Multiple Choice

By stabilizing their exchange rates to join the Eurozone, the Baltic states have seen:

• A) lower inflation.
• B) faster price growth.
• C) massive budget deficits.
• D) faster price growth and massive budget deficits.

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Definitions:

Alluvial Fan

A fan or cone-shaped deposit of sediment built up by streams, typically found where a fast-flowing river flattens, slows, and spreads typically at the mouth of a canyon.

Desert Wash

A sandy or gravel-rich channel in a desert or other arid region.

Alluvial Fan

A fan-shaped deposit formed where a fast-flowing stream flattens, slows, and spreads out sediment at the base of mountains.

Desert Varnish

A thin, dark coating found on the surfaces of rocks in arid environments, composed of clay minerals mixed with iron and manganese oxides.