Denmark decided to remain outside the Eurozone but commit to the ERM because: a) Denmark is nationalistic and stubbornly wants to have its own currency (the krone ). b) the Danish people want their central bank to retain the option of exercising monetary autonomy in the future. c) trade between the Eurozone and Denmark is small and therefore does not generate sufficient reductions in transaction costs to justify the hard peg of the Eurozone. d) membership in the Eurozone would allow much more exchange rate flexibility ( /-15\%) than the ERM