Moderate

Countries with chronic balance of payments deficits eventually need to borrow abroad often from the ________ as the lender of last resort?

Correct answer: C. IMF

  • A. U.S
  • B. OECD
  • C. IMF
  • D. OPEC

Explanation

The International Monetary Fund lends to countries facing persistent balance-of-payments difficulties and serves as an international lender of last resort. OECD and OPEC are not primarily emergency balance-of-payments lenders.

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The economy is studied as a whole through national income, gross domestic product, inflation, unemployment, economic growth and business cycles. Coverage includes aggregate demand and supply, consumption and investment, money and banking, fiscal and monetary policy, exchange rates and balance of payments, which distinguishes macroeconomics from the study of individual markets.

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