According to Richard Baldwin, Studies Indicating Massive Increases in Trade

question 91

Multiple Choice

According to Richard Baldwin, studies indicating massive increases in trade resulting from currency unions are:

• A) biased because of use of data from rich countries.
• B) generally applicable to the euro.
• C) underestimating the impact of the euro on intra-European Union trade.
• D) not the result of lowering the transaction costs for trade within the euro area.

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Definitions:

Tax

A financial charge imposed by the government, required for the support of the government and public services.

Tax Per Unit

A tax imposed on goods or services that is based on a fixed amount for each unit sold.

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Books printed on lower-quality paper with soft covers, typically more affordable and portable than their hardcover counterparts.

Gasoline

A volatile, flammable liquid derived from petroleum, used chiefly as fuel in internal-combustion engines.