The IMF Offers Loans to Developing Countries in Times of Balance

Multiple Choice

The IMF offers loans to developing countries in times of balance of payment constraints, but the IMF also faces strong criticisms because:

A) it employs economists that know little about developing countries and their economic affairs.
B) the conditions tend to be procyclical, therefore worsening the recessions.
C) contractionary fiscal and monetary policies are always undesirable for any developing country.
D) contractionary fiscal policy and expansionary monetary policy tend to be ineffective against balance of payment constraints.