With tied aid, the aid recipient must use the aid to purchase goods and services from the donor. MNC investment depends on tax concessions, which is not directly related to tied aid. Aid recipients may also have to follow World Bank/IMF conditionality, but this is not a necessary aspect of tied aid.

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With Tied Aid

Question 15

Multiple Choice

With tied aid

A) MNC investment depends on tax concessions.
B) aid recipients must use the aid to purchase goods and services from the donor.
C) aid recipients must follow World Bank/IMF conditionality.
D) all of the above.

Correct Answer: