Economics (AS & A Level) · May / June 2026 · Paper 32 · Question 28

One year, the World Bank gave a loan of $650 million to Angola to help stabilise the economy. The Bank said Angola needed to have a fiscal policy that would encourage the diversification of its economy. Which policy would be consistent with this requirement?

1. Athe lowering of interest rates to encourage investment in solar power
2. Bthe relaxing of regulations to allow the development of a new hydropower project
3. Cthe spending of the loan supporting its existing oil industry after oil prices collapsed
4. Dthe subsidising of a partnership with a French company to establish a chain of tourist hotels

As printed in the paper