Multiple Choice
Suppose that the United Kingdom pegs the pound to the euro. If all other things remain unchanged, what would you expect to happen to European GDP if all countries who use the euro decided to adopt contractionary fiscal policies?
A) It would rise.
B) It would fall.
C) It would not change.
D) That cannot be determined using the information provided.
Correct Answer:
Verified
Correct Answer:
Verified
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