There is a possibility of increased capital imports,investment,and consumption in countries that receive foreign aid because,in general,foreign aid provides _____.
A)a surplus in all product markets
B)additional agricultural output
C)additional purchasing power
D)a regular inflow of skilled labor
E)additional foreign exchange

Question

Quizplus · Accepted Answer

Foreign aid provides additional purchasing power to the recipient country, which can lead to increased capital imports, investment, and consumption.

There Is a Possibility of Increased Capital Imports,investment,and Consumption in Countries