As a result of preconditions set by the World Bank and/or IMF, in what way(s) must governments of developing nations act?
A) Spend less and reduce consumption.
B) Spend more and reduce consumption.
C) Spend less and increase consumption.
D) Spend more and increase consumption.

Question

Quizplus · Accepted Answer

The preconditions set by the World Bank and/or IMF generally require governments of developing nations to reduce their spending and consumption in order to reduce their debt and deficits. This is often accompanied by policies promoting austerity measures such as cuts to public services and social programs.

As a Result of Preconditions Set by the World Bank