In what sense is austerity an inevitable result of structural ...

[tatyanajohnson]

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.

[perkiness]

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]

TYSM

[Viet Thy]

Thanks for the timely response, appreciate it