3416EconomicsMedium
When the world Bank or IMF requires improved external balance in the short run the agency may condition its loan on expenditure switching that is?
Adevaluing local currencies
Bincrease government spending
Cincrease trade restrictions by imposing quota
Dswitching spending from domestic to foreign sources
Correct answer
A. devaluing local currencies
Explanation
The correct answer is devaluing local currencies.