Limits on a country's ability to use aid effectively are referred to as its
a. absorptive capacity
b. bilateral aid
c. conditionality
d. grant element
e. none of the above
A
Economics
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If interest rates increase, what is most likely to happen to the total expenditure schedule?
A. It will increase because G increases. B. It will decrease because I decreases. C. It will decrease because (X – IM) decreases. D. It will increase because I increases.
Economics
An economy with an expansionary gap will, in the absence of stabilization policy, eventually experience a(n) ________ in the inflation rate, leading to a(n) ________ in output.
A. decrease; increase B. increase; increase C. decrease; decrease D. increase; decrease
Economics