How Did the IMF Step in to Help Argentina in 1994

question 75

Multiple Choice

How did the IMF step in to help Argentina in 1994?

• A) The IMF required it to immediately let its currency float.
• B) The IMF required it to repay all past-due loans as a condition for new lending.
• C) The IMF extended emergency loans to help it restore its backing ratio.
• D) The IMF required it to immediately let its currency float and to repay all past-due loans as a condition for new lending.

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Definitions:

Efficient Tax System

A tax system that collects required revenue without excessive government borrowing, and does so in a way that does not impede economic growth.

Tax Revenues

The income that is received by the government from taxpayers, including individuals and businesses, to fund public expenditures.

Deadweight Loss

The loss of economic efficiency that can occur when the equilibrium for a good or a service is not achieved or is not achievable.

Marginal Tax Rate

The rate at which your last dollar of income is taxed, indicating the percentage of tax applied to your income for each tax bracket in which you qualify.