The economy in the African nation Sponeto has been stagnant for a long time. The government and central bank of Sponeto have been considering options for what can be done to help stimulate investment and growth in the economy.
Many in the Sponeto government agree that increasing the money supply to the nation's economy would be of significant help to the country. The national bank's reserve, however, is short on the funds needed, and suggests asking for them from the International Monetary Fund (IMF). Which of the following, if true, would strengthen the case for this course of action?
The IMF has been known to force donor countries to drop tariffs put in place to protect domestic industries.
The IMF has been known to force donor countries to privatize national companies.
The IMF contributes money as well as financial advice to help countries with economies suffering from balance-of-payment problems.
IMF loans typically come with many conditions attached that may result in increased poverty in the donor country.
A number of developing countries have suffered financial disasters from following IMF advice.
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