The reason the country of Ecuador has adopted the use of the US dollar for transactions within the country is   a. to be able to lower taxes   b. to increase government revenues   c. to credibly commit to minimize inflationary pressures in the country   d. to be able to effectively implement monetary policy

Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter29: Exchange Rates And International Capital Flows
Section: Chapter Questions
Problem 28CTQ: We learned that changes in exchange rates and the corresponding changes in the balance of trade...
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The reason the country of Ecuador has adopted the use of the US dollar for transactions within the country is

  a.

to be able to lower taxes

  b.

to increase government revenues

  c.

to credibly commit to minimize inflationary pressures in the country

  d.

to be able to effectively implement monetary policy

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