The Historical Record Indicates That Foreign Aid Has

question 16

Multiple Choice

The historical record indicates that foreign aid has

• A) played a major role in helping formerly poor countries grow rapidly and achieve high income levels.
• B) re-enforced corrupt governments and policies that stifle productive activities.
• C) helped poor countries escape counterproductive policies imposed by authoritarian political leaders.
• D) promoted economic growth, but slowed the movement toward political democracy.

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Definitions:

1930s

refers to the decade known for the Great Depression, a severe worldwide economic downturn that lasted from 1929 to 1939.

Economic Behaviorists

Scholars or researchers who study how psychological and emotional factors affect the economic decisions of individuals or institutions.

Supply Side Economists

Economists who believe in the effectiveness of policies that focus on boosting output and economic growth by increasing the supply of goods and services, often through tax cuts and deregulation.

Classical Economists

Economists from the 18th and 19th centuries who focused on the idea that free markets regulate themselves through the laws of supply and demand.