Successful foreign aid programs
A) enhance a DVC's resources and therefore shift its production possibilities curve to the left.
B) enhance a DVC's resources and therefore shift its production possibilities curve to the right.
C) move the DVC from a high-investment-low-consumption position to a low-investment-high- consumption position on its stable production possibilities curve.
D) cause a DVC's exchange rate to depreciate.

Question

Quizplus · Accepted Answer

Successful foreign aid programs enhance a DVC's resources, which can lead to an increase in productivity and economic growth. This increase in resources shifts the production possibilities curve to the right, allowing the country to produce more goods and services with the same amount of resources. Therefore, choice B is the correct answer.

Successful Foreign Aid Programs