In the EMU a country's competitiveness can change because of ?
Correct answer: C. domestic wage and price adjustment
- A. interest rate adjustment
- B. central bank intervention in the Forex
- C. domestic wage and price adjustment
- D. devaluation
Explanation
Inside the EMU, members share a monetary policy and cannot independently devalue or adjust interest rates. They can therefore change competitiveness mainly through domestic wage and price adjustment.
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