Which of the Following Focuses on Making Low-Interest Loans to Cash-Strapped

question 72

Multiple Choice

Which of the following focuses on making low-interest loans to cash-strapped governments in poor nations that wish to undertake significant infrastructure investments?

• A) the WTO
• B) the GATT
• C) the World Bank
• D) the IMF

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Definitions:

Resource Allocation

The process of distributing available resources among different uses identified in an economy.

Taxing Polluters

A policy approach that imposes taxes on companies or individuals who produce pollution as a means to internalize environmental externalities and encourage pollution reduction.

Positive Externalities

Benefits that affect a third party not directly involved in a transaction or activity, resulting in a positive effect on society.

Principal-Agent Problem

A dilemma in economics where one party (the agent), acting on behalf of another party (the principal), may have different goals or incentives, potentially leading to inefficiencies.