The IMF offers loans to developing countries in times of balance of payment constraints, but the IMF also faces strong criticisms because:
A. contractionary fiscal policy and expansionary monetary policy tend to be ineffective against balance of payment constraints.
B. contractionary fiscal and monetary policies are always undesirable for any developing country.
C. it employs economists that know little about developing countries and their economic affairs.
D. the conditions tend to be procyclical, therefore worsening the recessions.
Answer: D
You might also like to view...
The amount of a good that is given up to produce another good is:
a. its dollar cost. b. its opportunity cost. c. its relative cost. d. its absolute cost. e. all of these.
The lending facility that allows any bank to borrow reserves from the Fed is called the:
A. reserve window. B. discount window. C. borrower of last resort. D. reserve rate.
In the spring of 2002 we were in the _____ phase of the business cycle.
A. recovery B. prosperity C. depression D. recession
According to this Application, home equity is the single largest component of net wealth for most families in the United States. As home equity falls
A) autonomous consumption will decrease, shifting the consumption function downward. B) the MPC will decrease, increasing the slope of the consumption function. C) autonomous consumption will decrease, shifting the consumption function upward. D) the MPC will decrease, decreasing the slope of the consumption function.