A disadvantage of foreign aid is that _____
A) it leads to a decline in the standard of living in donor countries.
B) it leads to the disinvestment of public sector industries in recipient countries.
C) the agricultural sectors of recipient countries experience surplus output.
D) government officials are insulated from their own incompetence.
E) it leads to hyperinflation in the recipient countries.

Question

Quizplus · Accepted Answer

Foreign aid often leads to corruption and dependency in recipient countries, which can insulate government officials from their own incompetence and reduce accountability. This can perpetuate a cycle of poverty and hinder long-term development.

A Disadvantage of Foreign Aid Is That _____