The Credibility Theory of EMS Had as an Effect

question 56

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.
• E) the inflation rate in the U.S. dropped to the low German levels.

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