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Possible Explanations for the "Convergence" of Market Interest Rates in Western

Question 24

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Possible explanations for the "convergence" of market interest rates in Western Europe at the inception of the European Monetary Union (EMU) include:


A) A perceived decline in currency risk as the Euro replaced many traditional currencies
B) The occurrence of the long-awaited turnaround at Euro-Disney
C) A predicted inflation decline due to the new European Central Bank
D) All of the above
E) Choices A and C only

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