The Credibility Theory of EMS Had as an Effect

question 19

Multiple Choice

The credibility theory of EMS had as an effect

• A)the inflation rates of member countries converging to the low German levels,a result that was not matched by similar countries who did not fix their exchange rates.
• B)the inflation rates of member countries failing to converge to the low German levels.
• C)the inflation rates of member countries converging to the low German levels,but other countries including U.S.and Britain also reduced inflation in this time period without fixing exchange rates.
• D)the inflation rate in Germany rose to match the inflation rates of other member countries.

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