Discuss why the World Bank has been criticized for making loans to nations that can attract private funds

What will be an ideal response?

Loans given to nations that can attract private funds interfere with the private market for capital goods. This can encourage inefficient investment in projects that should not be undertaken.

Economics

You might also like to view...

When applied to decision making, satisficing means that

Economics

According to the short-run Phillips curve, which of the following would result in low rates of unemployment?

A) a higher inflation rate B) weak increases in aggregate supply C) a lower inflation rate D) weak increases in aggregate demand

Economics