The credibility theory of the EMS implies in effect that the political costs of violating international exchange rate agreements
A) cannot restrain governments from depreciating their currency.
B) can restrain governments from depreciating their currency.
C) cannot restrain governments from depreciating their currency in the short run.
D) cannot restrain governments from depreciating their currency in the long run.
E) can control the political policies of member nations.
B
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Which of the following would cause a decrease in the demand for U.S. dollars?
A. An economic boom in the United States B. An economic boom in Europe C. Increased vacations in the United States by Europeans D. A recession in Europe
A decrease in the real interest rate acts as ________ for lenders and as ________ for borrowers
A) an increase in wealth; an increase in wealth B) an increase in wealth; a decrease in wealth C) a decrease in wealth; an increase in wealth D) a decrease in wealth; a decrease in wealth
The three primary sources of corporate funds are
A) banks, friends, and family. B) government, other corporations, and the central bank. C) investment banks, brokerages, and insurance companies. D) stocks, bonds, and reinvestment of profits.
Variable costs are
a. costs that vary with output b. not important in decision making c. costs that do not vary with output d. equal to total costs