Multiple Choice
Did the 1957 Treaty of Rome turn the EU into a truly unified market?
A) Yes, it paved the way for the current EMU.
B) No, although it established a customs union, it failed to remove barriers to the movement of goods and factors within Europe.
C) No, it was only after the German unification and locating the ECB in Frankfurt that unity was achieved.
D) No, since the Northern members of the EU had larger endowments of capital and skilled labor.
E) No, the Treaty of Rome created more trade barriers between European countries.
Correct Answer:

Verified
Correct Answer:
Verified
Q14: A country that joins an exchange rate
Q15: Explain the credibility theory of the EMS.
Q16: Explain why when Norway unilaterally fixes its
Q17: What is the purpose of the following
Q19: How do constraints on monetary policy in
Q20: Explain why after, say Norway unilaterally pegs
Q21: A krone/euro peg alone is<br>A) not enough
Q22: Describe the single supervisory mechanism or SSM
Q23: How much trade do currency unions create?
Q27: Explain the theory of optimum currency areas.