A set of economic policies prescribed to correct flaws in a national economy is known as:
A) the Washington Consensus.
B) a structural adjustment program.
C) autarky.
D) liberalization.

Question

Quizplus · Accepted Answer

A structural adjustment program (SAP) is a set of economic policies aimed at correcting imbalances within a national economy. These policies often involve liberalization, privatization, decreased government spending, and currency devaluation. The term SAP was first used by international financial institutions, such as the World Bank and International Monetary Fund, to describe the conditionalities attached to loans given to developing countries. Today, the term is used more broadly to describe economic reform programs implemented in both developed and developing countries. The Washington Consensus refers to a set of neoliberal economic policies prescribed by international financial institutions in the 1990s, while autarky refers to a self-sufficient economy that does not engage in international trade. Liberalization refers specifically to the removal of government regulations and restrictions on economic activity.

A Set of Economic Policies Prescribed to Correct Flaws in a National