The International Monetary Fund (IMF) generally recommends contractionary fiscal policy for countries with budget deficits greater than 5% of GDP. The US has been over that figure on a consistent basis yet there is no such recommendation for the US. This is because O the US borrows in its own currency O The US controls the IMF as a very large economy things are just different the US is not a member of the IMF
The International Monetary Fund (IMF) generally recommends contractionary fiscal policy for countries with budget deficits greater than 5% of GDP. The US has been over that figure on a consistent basis yet there is no such recommendation for the US. This is because O the US borrows in its own currency O The US controls the IMF as a very large economy things are just different the US is not a member of the IMF
Chapter24: Fiscal Policy
Section: Chapter Questions
Problem 1P
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![The International Monetary Fund (IMF) generally recommends contractionary fiscal policy for countries with budget
deficits greater than 5% of GDP. The US has been over that figure on a consistent basis yet there is no such recommendation
for the US. This is because
O the US borrows in its own currency
The US controls the IMF
as a very large economy things are just different
the US is not a member of the IMF](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3a64c038-c86f-4a6d-8983-8e24b3119ec5%2F1843098c-de8f-4d8b-abaa-cfe9338ba609%2F8x9e397_processed.jpeg&w=3840&q=75)
Transcribed Image Text:The International Monetary Fund (IMF) generally recommends contractionary fiscal policy for countries with budget
deficits greater than 5% of GDP. The US has been over that figure on a consistent basis yet there is no such recommendation
for the US. This is because
O the US borrows in its own currency
The US controls the IMF
as a very large economy things are just different
the US is not a member of the IMF
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