One of the usual policy changes included in an IMF prescription is:
A)temporary cartels in domestic product markets.
B)changes in fiscal policy to reduce the government budget deficit.
C)increased barriers to imports.
D)decreased regulation of public sector enterprises.

Question

Quizplus · Accepted Answer

The IMF usually recommends changes in fiscal policy as a part of its prescription to reduce the government budget deficit. This may involve reducing government spending or increasing tax revenue. This is seen as a way to stabilize the economy and reduce inflation. Options A, C, and D are not typically included in IMF prescriptions.

One of the Usual Policy Changes Included in an IMF