A Disadvantage of Foreign Aid Is That

Multiple Choice

A disadvantage of foreign aid is that:

A) it leads to a decline in the standard of living in donor countries.
B) it leads to the disinvestment of public sector industries in the recipient countries.
C) the agricultural sectors of recipient countries experience surplus output.
D) government officials are insulated from their own incompetence.
E) it leads to hyperinflation in the recipient countries.