Now That France and Germany Use a Common Currency, If

Multiple Choice

Now that France and Germany use a common currency, if there is a shift in demand away from French goods and towards German goods, then

A) employment is likely to rise in Germany but will fall in France.
B) unemployment will rise in Germany and inflation is likely to rise in France.
C) there will be no macroeconomic effects.
D) the central bank will reduce the interest rate for the common currency.