Which of the following statements is used to justify protectionism?
A) Free trade leads to higher prices for imported goods.
B) Trade restrictions are not necessary to protect new firms since they can gain experience and become more productive without protection.
C) A country should not rely on other countries for goods that are critical to its national defense.
D) Free trade increases employment by protecting domestic firms.
C
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The purpose of the IMF is to:
A. provide developing countries with short-term loans and technical assistance. B. determine monetary and fiscal policy in developing countries. C. determine exchange rates for developing countries. D. buy and sell the currencies of developing countries in order to stabilize their value.