Pls help with below homework, dont copy paste from google. True/False/Uncertain - Briefly explain.Labour mobility and wage/price flexibility are needed for adjustment to temporary shocks in amonetary union.O The larger the internal sovereign debt, the more likely a sovereign default in a monetary union.O The Lender of Last Resort (LOLR) function of the central bank poses a moral hazard risk.Internal devaluation (i.e. lower wages/prices) is an alternative adjustment mechanism to anexchange rate devaluation.

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True/False/Uncertain - Briefly explain. O Labour mobility and wage/price flexibility are needed for adjustment to temporary shocks in a monetary union.

Macroeconomics: Principles and Policy (MindTap Course List)

13th Edition

ISBN:9781305280601

Author:William J. Baumol, Alan S. Blinder

Publisher:William J. Baumol, Alan S. Blinder

Chapter19: The International Monetary System: Order Or Disorder

Section: Chapter Questions

Problem 8DQ

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Question

Pls help with below homework, dont copy paste from google.

True/False/Uncertain - Briefly explain.
Labour mobility and wage/price flexibility are needed for adjustment to temporary shocks in a
monetary union.
O The larger the internal sovereign debt, the more likely a sovereign default in a monetary union.
O The Lender of Last Resort (LOLR) function of the central bank poses a moral hazard risk.
Internal devaluation (i.e. lower wages/prices) is an alternative adjustment mechanism to an
exchange rate devaluation.

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