The "Beijing Consensus" Approach to Economic Development, a Model Based

question 56

Multiple Choice

The "Beijing Consensus" approach to economic development, a model based on China's rapid economic growth, implies

• A) applying liberal economic policies to East Asia to assist with development in that region.
• B) working through the Association of Southeast Asian Nations (ASEAN) to pursue growth and development.
• C) not permitting private companies to function in the economy.
• D) experimenting with policies that are compatible with a state's political structure and experience rather than with economic liberalism.
• E) engaging in debt restructuring.

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Definitions:

Loanable Funds

The resources available for borrowing in the financial markets, influenced by savings, borrowing, and the government’s fiscal policies.

Demand For Loanable Funds

The desire to borrow money, driven by (among other factors) investments and the consumer desire for purchasing goods or services on credit.

Open-Economy Macroeconomic Model

A theoretical framework that analyzes the economy of a country in the context of its interactions with other countries, including trade, investment, and financial flows.

Supply Of Loanable Funds

The total amount of funds available for borrowing in the financial markets, determined by savings and the monetary policy.