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Diagnostic Test 2 Practice Test

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Q1

A policy economist contends that unconditional cash transfers reduce short-term food insecurity more effectively than food vouchers of equal face value. The logic is that cash enables households to bulk-buy staples, cover transport, or pay small debts that otherwise interrupt food purchasing. The claim is explicitly about the first few months after receipt, when flexibility can smooth shocks. While some observers point to the symbolic value of cash or to long-run convergence between programs, the scholar argues that only a short-horizon, controlled comparison can adjudicate the claim. Ideally, markets, prices, and transfer amounts would be equivalent across groups, with outcomes measured using a standardized food insecurity scale over the first 8 to 12 weeks.

Which finding, if true, would most directly support the scholar's claim?

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