Due to a variety of macroeconomic and microeconomic factors,the country of Broost suffered permanent adverse shifts in the demand for its products.Per the IMF's Articles of Agreement,Broost suffered from a
A)competitive advantage.
B)capital flight.
C)fundamental disequilibrium.
D)break-even point.
E)diseconomies of scale.

Question

Quizplus · Accepted Answer

A permanent adverse shift in demand indicates a fundamental disequilibrium, which is defined by the IMF as a situation where a member country's balance of payments position cannot be restored without policy changes beyond mere adjustment. This means that Broost's current economic situation is unsustainable and requires structural changes to correct.

Due to a Variety of Macroeconomic and Microeconomic Factors,the Country