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7. 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 Uniform prices O O Enhanced competition O O Increased difficulty adjusting out of recession O O Lower cost of currency conversion O O Higher risk of public debt O O Which of the following are reasons NAFTA is considered currency area? Check all that apply. Strong linkages between countries A single monetary policy that is equally effective across borders Unequal economic efficiency gains Low price stability