The IMF Offers Loans to Developing Countries in Times of Balance

question 45

Multiple Choice

The IMF offers loans to developing countries in times of balance of payment constraints, but the IMF also faces strong criticisms because:

• A)the IMF has economists that know little about developing countries and their economic affairs.
• B)the conditions tend to be procyclical, therefore worsening the recessions.
• C)contractionary fiscal and monetary policies are always undesirable for any developing country.
• D)contractionary fiscal policy and expansionary monetary policy tend to be ineffective against balance of payment constraints.

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Definitions:

Physical Illness

A condition that affects the body's normal functions, often characterized by specific signs and symptoms.

Vicarious Trauma

Psychological harm experienced by individuals due to exposure to the trauma stories of others, often affecting those in caregiving or first responder roles.

Mimic

Involves imitating or copying the actions, speech, or mannerisms of another person or thing.

Crisis

A critical situation requiring immediate attention, characterized by instability or difficulty requiring a significant response.