The credibility theory of the EMS implies

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

B.can restrain governments from depreciating their

C.cannot restrain governments from depreciating their currency in the short

D,cannot restrain governments from depreciating their currency in the long run.

E.None of the above.

Answer: B