(10 PTS) COMPARING THE EXAMPLES OF DENMARK AND THE UNITED KINGDOM...

22. (10 pts) Comparing the examples of Denmark and the United Kingdom in relationship to the European Monetary Union, the krone is pegged to the euro, whereas the British pound is not. What could be predicted about their interest rates?

The United Kingdom has the ability to set its own interest rates and pursue an independent

monetary policy, whereas Denmark's rates are virtually the same as those of the euro.