Some Nations Benefit Absolutely from Abandoning Their Monetary Policy and Control

question 134

Multiple Choice

Some nations benefit absolutely from abandoning their monetary policy and control of their currency because:

• A) their monetary policy permitted high inflation under pressure from political interests that would not be present under a common currency arrangement.
• B) they did not have sufficient currency in their own nation to support a higher GDP.
• C) they had a strong currency, which hurt their exports.
• D) the central bank would keep the money supply under tight control, which is not good for economic expansion and jobs.

---

Definitions:

1994

A year notable for several global and regional events, including the signing of the North American Free Trade Agreement (NAFTA), the genocide in Rwanda, and the election of Nelson Mandela as South Africa's president.

Demographic Changes

Alterations in the composition of a population over time, including factors such as age, race, employment, urbanization, and birth and death rates.

Rapid

Describes something happening in a fast or speedy manner, often quicker than expected.

American Society

The social structure and cultural norms prevalent in the United States.