[Online Document Assignment:]
EIA Activity: Europe’s Search for a Fiscal Rule
Click on the links on the right to answer the following questions.
Use Link 1 to answer the following questions. True or False: Eleven countries adopted the euro in 1999.
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True or False: Every European Union member state has adopted the Euro.
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True or False: Lithuania adopted the Euro in 2015.
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| B. |
Use Link 2 to answer the following questions. True or False: One of the main tasks of the European Central Bank is to maintain price stability in the euro area.
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| B. |
True or False: The euro area refers to 25 countries that use the euro as the main currency.
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| B. |
Do you think it is easy for countries who belong to the European Union to agree on fiscal policy? Yes or no? Discuss.
Which fiscal policy measure is easier to agree on among countries who belong to the European Union, reducing government spending or raising taxes? Explain.
Discuss the costs and benefits of many countries using one currency such as the Euro.
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