As a result of its power to dictate loan terms to borrowing countries (under the Bretton Woods system),the IMF could encourage ________ countries to pursue ________ monetary policies that would strengthen their currency or eliminate their balance of payments deficits.

Question

Quizplus · Accepted Answer

The IMF would encourage deficit countries to pursue contractionary monetary policies to reduce spending and imports, thereby strengthening their currency and addressing balance of payments deficits.

As a Result of Its Power to Dictate Loan Terms