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Economics (AS & A Level) · Oct / Nov 2025 · Paper 33 · Question 27

9708Relationship between countries at different levels of development

A low-income country receives aid from a high-income country. When will this aid give maximum benefit in the long term to the low-income country?

  1. Agrant — purchase of agricultural machinery
  2. Bgrant — payment of food subsidies
  3. Cloan — purchase of agricultural machinery
  4. Dloan — payment of food subsidies

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Correct answer: A. grant — purchase of agricultural machinery

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