Question 2 1 pts Suppose, Norway is considering joining the Eurozone, according to the theory of optimal currency area, the intersection of GG and LL determines O the optimal level of integration with the Eurozone desired by Norway. O the minimum level of integration that will cause Norway to join the Eurozone O the maximum level of integration that can aid Norway if it joined the Eurozone O the maximum integration level with the Eurozone desired by Norway. O the maximum level of integration that will cause Norway to join the Eurozone Question 3 1 pts About the Greek Debt Crisis since 2009, which of the following statement is wrong? O Before the Crisis, Greece was able to borrow at a relatively low interest rate from the richer Northern European countries O Due to the low interest rate, both households and government accumulated lots of debt O During the Crisis, the Greek government had to default on their debts which could have been avoided if the debts were issued by a currency printed their own government O One condition of the bailout program imposed by the rescuers of the Greek government is fiscal austerity: cutting expenditure and raise taxes. Due to the austerity program, the Greek debt to GDP ratio kept falling afterwards. Question 6 1 pts Which of the followings is a lesson that we can learn from the developing country crisis? O Countries should follow a proper sequence of liberalization O As long as a nation has sound financial regulations, it is immune to financial crises O The floating exchange rate regime is better than the fixed exchange rate regime which is vulnerable to speculative attacks O Financial liberalization is always good for economic growth