Exam 38: Macro Policy in Developing Countries

A policy change represents a:

In the early 2000s there was a strong black market for Chinese yuan.It is widely held that the Chinese yuan is undervalued.Based on this information, we know that China:

Central banks in developing countries:

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

Issuing money to finance budget deficits:

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

The IMF policies that accompany most IMF loans are typically:

The IMF often requires countries that borrowed from it to introduce policies that privatize government-owned industries such as telecommunications and power generation.This is an example of:

The movement from socialism to capitalism undertaken by Poland in the early 1990s represents:

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

An effect of the inflation tax is that it redistributes income from the:

A monetized debt prompts:

In comparison to most developed economies, developing countries:

In the 1980s and 1990s, Chile adopted capital controls that limited the ability of its citizens to buy or sell assets abroad.This action:

Developing countries employ the inflation tax because it provides a:

Developing countries have:

In 1980, Robert Mugabe was elected president of Zimbabwe.After his election, Mugabe introduced a number of Marxist economic reforms that were designed to give the government much greater control over the economy.His economic reforms are an example of:

The dual nature of most developing countries implies that:

If the government of a developing country reduces its budget deficit, then the inflation tax:

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