Asked by Alyssa Palmer on May 14, 2024
Verified
A disadvantage of foreign aid is that:
A) it leads to a decline in the standard of living in donor countries.
B) it leads to the disinvestment of public sector industries in the recipient countries.
C) the agricultural sectors of recipient countries experience surplus output.
D) government officials are insulated from their own incompetence.
E) it leads to hyperinflation in the recipient countries.
Disinvestment
The process of selling off a portion of assets or withdrawal of investment capital from stocks, bonds, or businesses, often indicating a strategic or economic decision.
Public Sector
The part of the economy that is controlled by the government, encompassing public services and enterprises, including education, healthcare, and law enforcement.
Hyperinflation
An extremely high and typically accelerating inflation rate, often resulting in rapidly eroding currency values and creating economic instability.
- Recognize the challenges and disadvantages associated with foreign aid.
Verified Answer
Learning Objectives
- Recognize the challenges and disadvantages associated with foreign aid.
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