Why has the IMF come in for widespread criticism for its handling of the Asian financial crisis?
A) It refused to make loans to any of the countries whose currencies were under speculative attack.
B) Its policies did not sufficiently punish speculators with losses, giving rise to moral hazard.
C) Its policies led to unsustainably low interest rates in a number of Asian countries.
D) Its policies failed to lead to sufficient hardship for citizens in a number of Asian countries, giving rise to moral hazard.
B
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Activists and nonactivists both believe that
a. the self-corrective mechanism of a market economy works quite well. b. macro-policy should seek to minimize economic fluctuations, keep the inflation rate low, and establish an environment consistent with strong economic growth. c. discretionary monetary and fiscal policy can be used successfully to speed the adjustment process and reduce the swings of the business cycle. d. policies that stimulate aggregate demand can reduce the long-term rate of unemployment.
Which of the following is NOT an advantage of a partnership?
A) limited liability B) easy to form C) Profits are subject to only personal taxation. D) permits more effective specialization in occupations