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Q. What prompted the EU countries to seek closer coordination of monetary policies and greater exchange rate stability in the late 1960s?
Answer:
1. To improve Europe's role in the world monetary system.
2. To turn the European Union into a really unified market.
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Q . Consider that the relative capital abundance of Australia was so much greater than that of Sri-Lanka, that we would have to locate Australia far to the right on the K/L axis.
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