Many developing countries face a balance of payments constraint because:
A. they fail to implement exchange rate policy correctly.
B. they hold too few international reserves.
C. they hold too many international reserves.
D. the IMF forces them to adopt policies that are counterproductive.
Answer: B
You might also like to view...
The average tax rate is the rate at which an additional dollar earned is taxed
a. True b. False Indicate whether the statement is true or false
The graph for a monopolist’s profits shows that at output QM, the firm’s total cost is ______.
a. $100
b. $400
c. $600
d. $800
Those who prefer a passive approach to the conduct of macroeconomic policy tend to believe that markets are self-correcting
a. True b. False Indicate whether the statement is true or false
The ratio of money created by the lending activities of the banking system to the money created by the government's central bank is called the:
A. money multiplier. B. reserve ratio. C. federal funds. D. demand deposits.