Question

Countries that require substantial loans from the International Monetary Fund to survive will ________ due to IMF-mandated economic policies. Group of answer choices benefit from a sharp expansion of demand in the long term endure a sharp contraction of demand in the long term benefit from a sharp expansion of demand in the short term endure a sharp contraction of demand in the short term

Answer 1

Such countries will endure a sharp contraction of demand in the short term

Step-by-step explanation:

International Monetary Fund (IMF) grants loans on differing scales to countries in need but has certain regulatory economic policies in place, such as one that limits government spending.

These policies cause demand in such countries to contract sharply in the short run.