Which one of the following is not an argument in support of the UK joining the EMU ?
Correct answer: B. The characteristics of the UK housing market make UK consumers expenditure very sensitive to changes in interest rates
- A. None of these arguments they are all arguments in support of the UK joining the UMU
- B. The characteristics of the UK housing market make UK consumers expenditure very sensitive to changes in interest rates
- C. The UK risks exclusion from the Euroland capital market with damaging consequences with damaging
- D. The UK needs to be a member of the EMU in order to continue to attract such large share of foreign direct investment in EU countries
Explanation
High interest-rate sensitivity in the UK housing market can make a single eurozone interest rate unsuitable for UK conditions, so it is an argument against joining the EMU. Exclusion from capital markets and possible effects on foreign investment are arguments presented in favour.
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