Countries that require substantial loans from the IMF to survive will endure a sharp contraction of demand in the short term due to IMF-mandated economic policies.

Question

Quizplus · Accepted Answer

IMF-mandated economic policies often require countries to implement austerity measures such as cutting government spending and increasing taxes, which can lead to a decrease in demand and economic activity in the short term.

Countries That Require Substantial Loans from the IMF to Survive