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Conservatives Argue That Government Spending Leads to No Net Increase

Question 30

Multiple Choice

Conservatives argue that government spending leads to no net increase in GDP because:


A) Government spending is wasteful and useless
B) Government spending on useful items reduces the ability of private investors to spend on the same things.
C) Government spending is exactly balanced by government taxes
D) Government spending on useful items increases the ability of consumers to spend on consumption items

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