The primary use of development assistance is to
A. encourage economic development through low-interest loans.
B. restrict the outflow of foreign direct investment.
C. invest in natural resources.
D. allow developing countries imitate rather than innovate technologies.
Answer: A
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In the late 1990s, the U.S. federal government had a budget surplus. If there is no Ricardo-Barro effect, the budget surplus ________ the real interest rate and ________ the equilibrium quantity of investment
A) did not change; did not change B) lowered; increased C) raised; increased D) raised; decreased E) lowered; decreased
The magnitude of the slope of an indifference curve
A) is equal to the marginal rate of substitution. B) always equals the relative price of the product measured along the horizontal axis. C) increases as income increases. D) decreases when income increases.