As aid increases,GDP growth:
A) increases.
B) decreases.
C) stays the same.
D) none of the above; there is no definite relationship between the two.

Question

Quizplus · Accepted Answer

There is no definite relationship between aid and GDP growth. While aid can have a positive impact on economic growth and development, there are also cases where aid has been found to have little to no impact or to even hinder economic growth. The impact of aid on GDP growth depends on various factors such as the effectiveness of aid delivery, the recipient country's economic policies and institutions, and the nature of the aid itself. Therefore, we cannot definitively say that aid will always increase, decrease or have no effect on GDP growth.

As Aid Increases,GDP Growth