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Unformatted text preview: B. was affirmed at the fixed exchange rate. C. was tied to gold. D. none of the above 76. According to the theory of optimum currency areas, A. the relevant criterion for identifying and designing a common currency zone is the degree of factor (i.e. capital and labor) mobility within the zone. B. exchange rates should reflect the degree to which workers are willing to move to get a better job. C. exchange rates are determined by portfolio managers seeking the highest return. D. none of the above....
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This note was uploaded on 11/09/2011 for the course FIN IFMG201 taught by Professor Eun during the Spring '11 term at Michigan Flint.
- Spring '11
- Exchange Rate