If the World Bank Makes Loans to Nations That Can

question 69

Multiple Choice

If the World Bank makes loans to nations that can attract private funds

• A) the increase in growth in that nation will spill over to other nations that are developing.
• B) these loans will interfere in the private market for capital goods and can lead to inefficient investment.
• C) the World Bank's loans will crowd out the private funds made to developing nations to encourage economic growth.
• D) the presence of the World Bank's loans will lead to even more private funds being attracted to that country.

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Definitions:

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