Which of the following observations about the International Monetary Fund (IMF)is true?
A)The IMF can force countries to adopt the policies required to correct economic mismanagement.
B)Internal political problems can affect a government's commitment to taking corrective action in return for an IMF loan.
C)In recent years,the IMF has begun to make its policies more tight and inflexible.
D)In response to the global financial crisis of 2008-2009,the IMF began to adopt a "one-size-fits-all" approach to macroeconomic policy.
E)In recent years,the IMF has begun to urge countries to oppose fiscal stimulus and monetary easing.

Question

Quizplus · Accepted Answer

Internal political problems, such as opposition from interest groups or domestic constituencies, can affect a government's commitment to taking corrective action in return for an IMF loan. The IMF does not have the power to force countries to adopt policies; rather, it provides conditional loans and offers policy advice. The IMF has actually been moving towards more flexible policies, and it has not adopted a one-size-fits-all approach. Additionally, the IMF has been urging countries to consider fiscal stimulus and expansionary monetary policy in response to the COVID-19 pandemic.

Which of the Following Observations About the International Monetary Fund