Multiple Choice
Which of the following, according to the Maastricht treaty, is a condition for participating in the common currency area?
A) At least half the population of the country must speak German, French and English.
B) A relatively small budget deficit- to- GDP ratio.
C) A relatively small amount of foreign aid to countries outside the area.
D) A promise that any future devaluations will be announced in advance.
E) The replacement of the country's prime minister with an appointee of the new "United States of Europe".
Correct Answer:

Verified
Correct Answer:
Verified
Q2: Policy makers can select from a number
Q3: Part of the reason that triggered the
Q4: A country which does not devalue when
Q5: Assume that policy makers are pursuing a
Q6: A number of situations can arise that
Q8: Assume that policy makers are pursuing a
Q9: The European Central Bank is located in
Q10: When policy makers decide to devalue the
Q11: Use the following information to answer the
Q12: Suppose the country that pegs its currency