Answer Happy

Consider the following proposals to reform long-term development lending programs currently offered by the IMF and World Bank. a. If the World Bank provides funds to governments that promise to allocate the funds to major institutional reforms aimed at enhancing economic growth, then it will face moral hazard problems A. because some governments will fail to have an incentive to follow through with reforms, even if their intentions had been good when they applied for World Bank loans. B. because some governments will offer bribes and payback to the officials and their intentions were never to carry out such reforms when they applied for World Bank loans. C. because most governments are corrupt and will never follow through with reforms, and they never intended to do so when they applied for World Bank loans. D. because most governments are honest and will succeed with these reforms, even if their intentions were not good when they applied for World Bank loans.