The credibility theory of the EMS implies in effect that the ...

[james]

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.

Question 2

Which of the following statements is TRUE?
 
  A) The 1957 Treaty of Rome founded the EU and created a custom union.
  B) The 1957 Treaty of Rome founded the EU.
  C) The 1957 Treaty of Rome founded the euro.
  D) The 1957 Treaty of Rome founded the European Central Bank.
  E) The 1957 Treaty of Rome founded the Stability and Growth Pact. known as SGP.

[atrochim]

Answer to Question 1

B

Answer to Question 2

A

[james]

TYSM

[juliaf]

Excellent