4. Economic costs and benefits of a common currency

Identify whether each attribute in the following table is an advantage or disadvantage of sharing a currency across country boundaries.

Attribute	Advantage	Disadvantage
Protection from monetary disturbances and speculation
Limited scope for fiscal policy
Lower transaction costs
Price stability
Speculative attacks during currency transition

Which of the following are reasons the European Union is considered currency area?Check all that apply.

Limited use of fiscal policy

Wage rigidity

Labor immobility

Low economic efficiency gains

4. Economic costs and benefits of a common currency Identify whether each attribute in the following table is an advantage or disadvantage of sharing a currency across country boundaries. Attribute Advantage Disadvantage Protection from monetary disturbances and speculation O O Limited scope for fiscal policy O O Lower transaction costs O Price stability O O O O Speculative attacks during currency transition O Which of the following are reasons the European Union is considered V currency area? Check all that apply. O Limited use of fiscal policy an optimal O Wage rigidity a suboptimal Labor immobility Low economic efficiency gains Grade It Now Save & Cont