The World Bank primarily issues loans in order to
A) promote long-term development and growth in a developing nation.
B) ensure long term stability within a banking system.
C) be the global lender of the last resort in the case of financial crisis.
D) maintain the IMF conditionality rules.
A
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The net increase to total surplus when a positive externality is corrected is due to:
A. the transfer of surplus from those affected by the externality to the consumer. B. the increased number of units bought and sold in the market. C. the transfer of surplus from the consumer to those affected by the externality. D. None of these statements is true.
If a worker’s nominal wage moves from $180 per week in a base period to $300 per week subsequently, but the real wage rises to only $240, we can conclude that
a. prices have increased faster than nominal wages. b. the price level has increased by 25 percent. c. the worker’s purchasing power has increased 67 percent. d. the worker’s purchasing power has increased 150 percent.
Which of the following about Social Security is true?
a. The regressive nature of the Social Security benefit formula works to the advantage of groups with below average earnings. b. Groups with an below average life expectancy gain from Social Security because they will typically draw retirement benefits over a more lengthy period of time. c. The life expectancy of Hispanics at age 20 is generally lower than the figures for whites and blacks. d. Hispanics derive a higher return from their Social Security taxes than whites, and substantially higher than blacks.
In the new classical model, a $100 billion increase in government purchases financed by borrowing will
a. increase the real interest rate, which will crowd out private spending. b. lead to a $100 billion increase in real GDP. c. lead to a $400 billion increase in real GDP if the marginal propensity to consume is three-fourths. d. leave the interest rate, aggregate demand, and real output unchanged.