For countries with high inflation rates,joining the European Monetary System meant
A)higher unemployment until they could lower their inflation rates sufficiently.
B)facing periodic upward adjustments in their exchange rate with the deutsche mark.
C)having to pursue loose monetary policy until they lowered the unemployment rate to the European average.
D)abandoning the fixed exchange rates they had preserved since the 1960s.

Question

Quizplus · Accepted Answer

Countries with high inflation rates joining the European Monetary System often faced higher unemployment as a consequence of needing to lower their inflation rates to align with the system's requirements. This often involved tightening monetary policy, which could lead to higher unemployment in the short term.

For Countries with High Inflation Rates,joining the European Monetary System