Some Critics of the IMF Point Out That the Organization

question 12

Multiple Choice

Some critics of the IMF point out that the organization should

• A)lend more long-term funds and learn to be more reactionary in a financial crisis.
• B)be more involved in all aspects of economic life around the globe because it is a very well-trusted organization.
• C)hire more consultants to test the feasibility of projects and encourage more import substitution policies.
• D)encourage countries to follow sound economic advice, especially when experiencing positive economic times and discourage long-term borrowing.

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Definitions:

Monopolistically Competitive Firm

A company operating in a market structure characterized by many firms selling products that are substitutes but different enough that each has a degree of market power.

Long-Run Equilibrium

A condition in which supply and demand are balanced, all inputs can be varied by firms, and there is no incentive for market entry or exit.

Graphs

Visual representations of data, relationships, or trends using points, lines, bars, or other symbols.

Long-Run Equilibrium

A situation in which, over time, supply and demand balance, causing prices to stabilize and firms to neither enter nor exit an industry.