The Credibility Theory of the EMS Implies in Effect That

question 40

Multiple Choice

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 to gain the short-term advantage of an economic boom at the long-term cost of higher inflation.
• B) can restrain governments from depreciating their currency to gain the short-term advantage of an economic boom at the long-term cost of higher inflation.
• 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) cannot restrain governments from depreciating their currency to gain the long-term advantage of an economic boom.

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Definitions:

Passenger Screening

The process of evaluating passengers before they board public transportation to enhance security by preventing prohibited items or dangerous individuals from boarding.

Immigration And Customs

Governmental processes and agencies responsible for controlling the flow of people and goods across national borders.

Just War Doctrine

A theory in international relations that outlines the conditions under which a war can be morally justified.

Right Intention

The ethical principle that actions should be guided by good or morally correct purposes.