IMF loans, which come with the condition that the central bank must tighten monetary policy, are frequently accompanied by in the short run.
A)higher inflation
B)strong economic growth
C)lower interest rates
D)higher unemployment
On March 10, 2000, the technology-asset bubble burst, sending the NASDAQ stock index down about
77% in two years. Explain how this contributed to the 2001 recession.

Question

Quizplus · Accepted Answer

IMF loans often require tightening monetary policy, which can lead to higher unemployment in the short run as interest rates rise and borrowing becomes more expensive, reducing economic activity.

IMF Loans, Which Come with the Condition That the Central