Suppose that soon after Norway pegs to the euro, EMU benefits from a favorable shift in the world demand for non Norwegian EMU exports What happens to the exchange rate of the Norwegian krone against noneuro currencies How is Norway affected How does the size of this effect depend on the volume of trade between Norway and the euro zone economies

Question: Suppose that soon after Norway pegs to the euro, EMU benefits from a favorable shift in the world demand for non-Norwegian EMU exports. What happens

Suppose that soon after Norway pegs to the euro, EMU benefits from a favorable shift in the world demand for non-Norwegian EMU exports. What happens to the of the Norwegian krone against noneuro currencies? How is Norway affected? How does the size of this effect depend on the volume of trade between Norway and the euro zone economies?

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