If One Euro Nation Is Experiencing Rapid Growth and Inflation

Multiple Choice

If one euro nation is experiencing rapid growth and inflation while another is facing sluggish growth and recession:

A) the European Central Bank ought to employ a tight monetary policy.
B) the European Central Bank ought to employ an easy monetary policy.
C) the two countries will disagree about the monetary policy that ought to be employed by the European Central Bank.
D) only an appreciation of the euro can help both countries simultaneously.