When the IMF provides loans to developing countries, it often requires these countries to adopt:
A. a contractionary fiscal policy and an expansionary monetary policy.
B. contractionary monetary and fiscal policies.
C. expansionary monetary and fiscal policies.
D. a contractionary monetary policy and an expansionary fiscal policy.
Answer: B
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The market value of domestic production is equal to the total expenditure on domestic agents:
A) plus the expenditure of foreign agents on exports minus gross investment by the foreign firms. B) plus the expenditure of foreign agents on exports minus domestic expenditure on imports. C) plus domestic expenditure on imports. D) plus domestic expenditure on imports minus the expenditure of foreign agents on exports.
Illustrate the effect of an open market sale of $20 million worth of Treasury bills on the Fed's balance sheet
What will be an ideal response?