Suppose Economists at the World Bank Develop a Theory with a Prediction

question 73

Multiple Choice

Suppose economists at the World Bank develop a theory with a prediction that increased levels of foreign aid lead to increases in per capita GDP in the recipient developing countries.They find empirical evidence that is consistent with this theory.The economists are able to conclude that

• A)the theory is valid,but should be subjected to continued scrutiny.
• B)the theory has been proven correct.
• C)the theory is always reliable.
• D)the evidence is rejected by the theory.
• E)the assumptions used in the theory have been proven correct.

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