EC

Homework 3

Chapters 8, 9, 10, 12

25 points

· Refer to the reading schedule, especially chapter 9.

· Write two full paragraphs for each question. A paragraph consists of three complete sentences.

Questions:

1. What benefits do using a single currency, the euro, provide to European countries?

2. What challenges does the European Central Bank face in developing monetary policy for the EU?

3. What is the effect of a weak euro on European exporters? What is the effect on European consumers?