Question

Amidst discussions on budget cuts to rein in the U.S. fiscal​ deficit, some commentators were of the opinion that foreign aid spending should be reduced. Others felt that reducing foreign aid would adversely affect the recipient countries.

Answer 1

Answer:

The answer is: That reducing foreign aid would adversely affect recipient countries.

Explanation:

If migration increases the job offer when it is most needed, it helps to accelerate the  speed at which the economy expands favoring the work of fiscal policy.

By increasing the labor supply, immigration generates that labor costs tend to remain relatively stable without generating pressure on prices, which can lead to  relax the tightening of monetary policy. About this possible result there is evidence.

For example, in the economic boom that was observed in the 1990s in the US, the  Productivity and workforce growth were key factors. Both kept unit labor costs at low levels and allowed the economy to grow faster with less inflation, perhaps reducing the need for the Federal Reserve (Fed) to intervene forcing upward interest rates.

The answer is: That reducing foreign aid would adversely affect recipient countries.