The Credibility Theory of the EMS Implies in Effect That

question 24

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.
• 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.

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Definitions:

Equal Treatment

The principle of giving the same access, opportunities, and considerations to all individuals regardless of their backgrounds or personal characteristics.

Ethical Environment

The moral principles and values that characterize the culture of an organization, influencing decisions, behaviors, and relationships within it.

Superior Performance

Exhibiting performance levels that significantly exceed the standard or norm in a particular area or activity.

Motivation Levels

Refers to the intensity and persistence of an individual's effort to achieve a specific goal.