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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Laura purchased a brand new Pontiac for $20,000. The moment she assumed ownership, and drove it off the lot, its market value immediately fell to $17,500. Is the $2,500 difference in value a sunk cost?
A) No. B) Yes it is, but only if Laura regrets her decision to have purchased the new Pontiac. C) Yes it is, but only if Laura receives no compensating benefit from the new Pontiac. D) Yes it is, but only if Laura decided to immediately resell the car. E) Yes it is, period.
Industry X comprises only very few large firms engaged in stiff competition with each other. Industry X can best be described as
A) pure competition. B) monopolistic competition. C) pure monopoly. D) oligopoly.