Suppose That the International Monetary Fund (IMF) Is Concerned About

question 2

Essay

Suppose that the International Monetary Fund (IMF) is concerned about currency depreciation in a small open economy. a. What type of fiscal policy should the IMF propose to the government of the small open economy to generate a currency appreciation?
b. Illustrate graphically the impact of the IMF proposal on the exchange rate of the small open economy.
c. What will happen to the trade balance of the small open economy, assuming that it started from a position of balanced trade?

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Definitions:

Decision-based Evaluation Model

A framework for analyzing and making judgments about programs, systems, or policies based on criteria related to decision-making processes and outcomes.

Evaluation

The systematic assessment of the value, importance, or effectiveness of something, often for the purpose of making improvements.

Descriptive Training Evaluation Models

Frameworks used to systematically assess and describe the effectiveness and outcomes of training programs.

External Variables

Factors outside of an organization that can influence its operations and performance, such as economic conditions, competition, and regulatory environment.