(a) What is meant by the fungibility of aid? Why is it held to be a problem by donorcountries and how do they seek to overcome it? Discuss the evidence on the degree of fungibility. [65 marks] (b) Describe Arndt et al. (2015)'s critique of Rajan and Subramanian (2008) in relation to the aid and growth literature. Evaluate the econometric validity of their argument. [35 marks]