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Author Question: In what sense is austerity an inevitable result of structural adjustment? What will be an ideal ... (Read 67 times)

tatyanajohnson

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on: Jun 30, 2018
In what sense is austerity an inevitable result of structural adjustment?
 
  What will be an ideal response?

Question 2

Special Drawing Rights are financial assets created by
 
  (a) the World Bank.
  (b) the United National Development Program.
  (c) multinational corporations.
  (d) the International Monetary Fund.


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perkiness

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Reply #1 on: Jun 30, 2018
Answer to Question 1

Adjustment brings expenditure reduction and expenditure switching. Expenditure reduction means that government programs are likely to be cut back. Expenditure switching moves resources from production of domestic goods to production of goods for export. Both local demand and supply will drop, causing higher unemployment and lower incomes. Devaluation may also bring inflation, cutting into real incomes.

Answer to Question 2

D


tatyanajohnson

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Reply 2 on: Jun 30, 2018
Great answer, keep it coming :)

sultansheikh

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Reply 3 on: Yesterday
Gracias!

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