Which of the Following Observations About the International Monetary Fund

question 12

Multiple Choice

Which of the following observations about the International Monetary Fund (IMF) is true?

• A)The IMF can force countries to adopt the policies required to correct economic mismanagement.
• B)Internal political problems can affect a government's commitment to taking corrective action in return for an IMF loan.
• C)In recent years,the IMF has begun to make its policies more tight and inflexible.
• D)In response to the global financial crisis of 2008-2009,the IMF began to adopt a "one-size-fits-all" approach to macroeconomic policy.
• E)In recent years,the IMF has begun to urge countries to oppose fiscal stimulus and monetary easing.

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Definitions:

Absolute Advantage

The ability of a country, individual, or firm to produce more of a good or service with the same amount of resources compared to others.

Coffee

Coffee is a brewed drink prepared from roasted coffee beans, the seeds of berries from certain Coffea species.

Salmon

A species of fish that is often found in the Northern Atlantic and Pacific oceans, known for their migration from ocean to freshwater to spawn.

Absolute Advantage

The ability of an individual, firm, or country to produce more of a good or service than competitors, using the same amount of resources.