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.