What does the term "conditionality" mean in respect to the policies of the International Monetary Fund (IMF)?
A) The IMF will grant loans to any country that seeks them.
B) The IMF will cut off loans to a country unless it meets certain specified policy goals regarding budget deficits, inflation, and other macroeconomic concerns.
C) The IMF will work with a country only if country destroys its own fiat money and instead adopts the euro.
D) The IMF will assist any foreign country that supports the military policies of the U.S. and Great Britain.
B
You might also like to view...
In November 2008, automobile executives from Ford, GM and Chrysler testified to Congress that their firms needed a $25 billion bailout to prevent bankruptcies. The executives stated that part of the cash would be used to re-design production lines
The $25 billion is ________ and the re-designed production lines are ________. A) financial capital; physical capital B) gross investment; physical capital C) physical capital; financial capital D) net investment; gross investment
Which of the following is an intermediate target of the Fed's policies?
a. Exchange rate b. Unemployment c. Money supply d. Interest rate e. Inflation
The crowding-out effect refers to the tendency of
a. the additional borrowing accompanying larger budget deficits to increase interest rates and reduce private spending. b. higher future taxes accompanying budget deficits to reduce private consumption. c. the inflation rate to rise when the unemployment rate is low. d. increases in private savings to reduce interest rates and, thereby, crowd-out government expenditures.
Assume that foreign capital flows from a nation increase due to political uncertainly and increased risk. If the nation has highly mobile international capital markets and a fixed exchange rate system, what happens to the net nonreserve international borrowing/investing balanceand monetary base in the context of the Three-Sector-Model? a. The net nonreserve international borrowing/investing
balance rises and monetary base rises. b. The net nonreserve international borrowing/investing balance rises and monetary base falls. c. The net nonreserve international borrowing/investing balance and monetary base fall. d. The net nonreserve international borrowing/investing balance and monetary base remain the same. e. There is not enough information to determine what happens to these two macroeconomic variables.