International aid has been criticized for all of the following except
a. aid going primarily to governments who may waste it through corruption or incompetence.
b. aid distorting markets and impeding economic reform.
c. aid often flowing out of the country quickly, diminishing the multiplier effect.
d. aid benefitting the receiving nation at the expense of neighboring countries.
Question 2
An economic effect whereby an increase in spending (for example, of funds provided to a country by a donor) produces an increase in national income and consumption greater than the initial amount spent is called the
a. untied aid.
b. multiplier effect.
c. export-led growth effect.
d. network effect.
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