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?

Question

Quizplus · Accepted Answer

Option C provides a direct and positive argument for seeking funds from the IMF, as it suggests that the organization not only provides financial aid but also advice to help countries with balance-of-payment problems. This reinforces the idea that seeking funds from the IMF would be a good course of action for Sponeto. The other options either provide negative aspects associated with IMF loans or focus on potential negative consequences of working with the IMF, which weaken the case for seeking funds from the organization.

The Economy in the African Nation Sponeto Has Been Stagnant