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
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Indicate whether the statement is true or false
A price-taking firm's variable cost function is C = Q3, where Q is the output per week. It has an avoidable fixed cost of $1,024 per week. Its marginal cost is MC = 3Q2. What is the profit maximizing output if the price is P = $192?
A. 0 or 5.33 or 8 B. 5.33 or 8 C. 0 or 5.33 D. 0 or 8
Which of the following statements is correct?
a. Vertical equity is the idea that taxpayers with similar abilities to pay taxes should pay the same amount. b. Horizontal equity is the idea that taxes should be levied on a person according to how well that person can shoulder the burden. c. A regressive tax would mean that high-income tax payers pay a larger fraction of their income in taxes than would low-income taxpayers. d. A proportional tax would mean that high-income and low-income taxpayers pay the same fraction of income in taxes.
In the table at right, the marginal product of the second worker is
A. 98
B. 38
C. 68
D. It cannot be determined