A high degree of real wage flexibility will tend to reduce the cost to a country of joining a currency union because ?

• A. All of the reasons given in these answers are correct
• B. real wages fall rapidly in a recession and the economy moves quickly back to long run equilibrium so limiting the duration of the recession even when
• C. workers will move from a country in which aggregate demand falls to other countries of the currency union, and so unemployment remains lower than it o
• D. real wages fall and so offset the inflationary effect of switching from the old currency to the new common currency