When macroeconomic policies are not coordinated,
A)macroeconomic policies will not be effective.
B)expansionary policies in one country are likely to increase global imbalances.
C)worldwide recessions are likely.
D)low-income countries cannot grow.

Question

Quizplus · Accepted Answer

When macroeconomic policies are not coordinated, expansionary policies in one country are likely to increase global imbalances. This can lead to trade imbalances, currency wars, and other negative consequences for the global economy. While the other options may also be potential outcomes of uncoordinated macroeconomic policies, B is the most direct and likely result.

When Macroeconomic Policies Are Not Coordinated