Industrially Advanced Countries Can Best Help DVCs by

question 139

Multiple Choice

Industrially advanced countries can best help DVCs by

• A) directing requests from DVCs for aid to the World Bank.
• B) using the International Monetary Fund to determine exchange rates in DVCs.
• C) increasing management control over development projects.
• D) adopting policies that expand trade with DVCs.

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Definitions:

Contractionary Monetary Policy

A monetary policy strategy used by central banks to reduce inflation and cool an overheated economy by raising interest rates or increasing reserve requirements.

Inflation

The frequency at which the all-encompassing costs of goods and services heighten, eroding financial purchasing capability.

Unemployment Rate

The percentage of the labor force that is jobless and actively looking for work.

Phillips Curve

An economic concept that depicts an inverse relationship between the rate of unemployment and the rate of inflation.