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Economics (AS & A Level) · May / June 2025 · Paper 32 · Question 29

9708Protectionism

The following are four conditions sometimes attached to IMF loans to low-income countries. Which condition would conflict with the 'infant industry' argument?

  1. Athe need to allow free trade
  2. Bthe need to control inflation
  3. Cthe need to have a contractionary fiscal policy
  4. Dthe need to privatise government enterprises

As printed in the paper

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Correct answer: A. the need to allow free trade

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