Exam 38: Macro Policy in Developing Countries

A regime change occurs when a government changes one aspect of its actions.

Foreign investment in developing countries is limited for all of the following reasons except:

Educational policy in most developing countries focuses too much on primary and secondary education and not enough on higher education.

The more rapidly the government creates money to finance its budget deficits, the:

In contrast to development, growth refers to an increase in:

In general, the IMF provides developing countries with:

What is the purchasing power parity method of comparing income in different countries? What are the results of using this method?

Developing countries tend to focus more on the goal of economic growth than developed countries.

In the early 2000s, Ecuador suffered high inflation because the central bank was financing a government deficit. In terms of fiscal and monetary policy, what created the problem of inflation was that Ecuador's:

If a developing country has sufficient reserves, the buying and selling of foreign currency by the central bank is:

Developing countries do:

Many developing countries face a balance of payments constraint because:

Indians and Indian-Americans have played a pivotal role in powering Silicon Valley's digital revolution. The emigration of talented people from countries like India to countries like the United States is often called:

In the early 2000s, Ecuador replaced its currency, the sucre, with the U.S. dollar as its official currency. What will no longer be possible for the government of Ecuador?

In dealing with their financing needs, developing countries have found that the inflation tax provides:

What is the balance of payments constraint? What international financial institutions can countries turn to when facing this constraint?

Seven problems facing developing countries that make their path to development difficult are: (a)Political instability, (b)Corruption, (c)Lack of appropriate institutions, (d)Lack of investment, (e)Inappropriate education, (f)Overpopulation, (g)Poor health and diseases.Briefly explain two of these problems,indicating how they make development difficult.

Central banks in most developing countries:

Which form of taxation do many developing countries rely on the most?

Since its independence in 1957, Ghana has experienced more than 12 coups d'état that have led to the overthrow of presidents and ministers, and in various cases, the change of political regimes. The textbook calls this situation an example of: