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

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter24: Fiscal Policy

Section: Chapter Questions

Problem 1P

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