Which of the Following Correctly Expresses the Relationship Between the Size

Multiple Choice

Which of the following correctly expresses the relationship between the size of government and economic growth?

A) Because it is the private sector in which growth occurs, the size of government is generally unrelated to the rate of economic growth.
B) When government is small, an increase in its size may increase economic growth, but beyond some point, further increases in the size of government will reduce economic growth.
C) When government is small, an increase in its size may initially lower economic growth, but when it becomes large enough, expansions in government generally increase the rate of economic growth.
D) The rate of economic growth appears to be increasing with the size of government for the levels of government that we observe in most major industrialized countries.